BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Using information for purposes other than those allowed by this Section Section 1010.540(b)(4)(i) of the Treasury Department’s Bank Secrecy Act regulations requires that information received by a covered financial institution or an association of financial institutions pursuant this Section shall not be used for purposes other than those described in 1010.540(b)(4)(i)(A) through (C). Lack of adequate procedures to protect security and confidentiality of information Section 1010.540(b)(4)(ii) of the Treasury Department’s Bank Secrecy Act regulations requires each covered financial institution or association of financial institutions that share information pursuant to this Section to maintain adequate procedures to protect the security and confidentiality of such information. Failure to implement a written CIP Section 1020.220(a)(1) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution to implement a written Customer Identification Program (CIP) appropriate for its size and type of business that includes certain minimums as specified in Section 1020.220(a)(1) through (5). This Section further requires the CIP to be part of the covered financial institution’s anti-money laundering compliance program. Failure of CIP to specify what identifying information will be obtained Section 1020.220(a)(2)(i)(A) of the Treasury Department’s Bank Secrecy Act regulations requires a covered financial institution’s Customer Identification Program to contain procedures for opening an account that specify the identifying information that will be obtained from each customer. Failure to obtain minimum information prior to account opening Section 1020.220(a)(2)(i)(A)(1) through (4) of the Treasury Department’s Bank Secrecy Act regulations specifies the information that a covered financial institution must obtain from a customer, at a minimum, prior to opening an account. Failure to properly address situations where TIN is not obtained Section 1020.220(a)(2)(i)(B) of the Treasury Department’s Bank Secrecy Act regulations states that a covered financial institution’s Customer Identification Program (CIP) may include procedures for opening an account for a customer that has applied for, but has not received a taxpayer identification number. In this case, the CIP must include procedures to confirm the application was filed before the customer opens the account and to obtain the taxpayer identification number within a reasonable period of time after the account is opened.

71,002

71,003

72,000

72,001

72,002

72,003

Revised 5/3/2023

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