A loan and a time deposit are each an account for purposes of the CIP rule. How do the requirements of the CIP rule apply to a loan that is renewed, or a certificate of deposit that is rolled over?
The CIP rule applies to a customer, generally, a person that opens a new account. 31 C.F.R. 103.121(a)(3)(i). (Emphasis added.) Account means a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. 31 C.F.R. 103.121(a)(1)(i). For purposes of the CIP rule, each time a loan is renewed or a certificate of deposit is rolled over, the bank establishes another formal banking relationship and a new account is established. However, the rule provides that the term customer does not include a person that has an existing account with the bank, provided that the bank has a reasonable belief that it knows the true identity of the person. 31 C.F.R. 103.121(a)(3)(ii)(C). In each of these cases, the customer has an existing account. Therefore, as long as the bank has a reasonable belief that it knows the persons true identity, the ba
Related Questions
- A loan and a time deposit are each an account for purposes of the CIP rule. How do the requirements of the CIP rule apply to a loan that is renewed, or a certificate of deposit that is rolled over?
- How do the requirements of the CIP rule apply to a loan that is renewed, or a certificate of deposit that is rolled over?
- Is a person who becomes co-owner of an existing deposit account a customer to whom the CIP rule applies?
