Does the CIP rule prohibit a minor from opening an account?
No, the CIP rule does not bar a minor from opening an account. It merely states that the banks customer is the individual who opens the account for an individual who lacks legal capacity, such as a minor. In other words, if a parent opens an account for a minor, the banks customer is the parent. If, however, a minor opens the account, then the minor is the banks customer. For example, where a bank sends its employees to elementary schools so that students may open savings accounts as part of a program to promote financial literacy, a student opening an account is the banks customer. In this situation, as for all customers, the bank should get the name, address, date of birth, and taxpayer identification number of the student. Since verification procedures are risk-based, banks can use any reasonable documentary or non-documentary method to verify a students identity. In this case, the bank might verify a students identity using a student identification card or by having the students te
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?
- Is a person who becomes co-owner of an existing deposit account a customer to whom the CIP rule applies?
- Does the CIP rule prohibit a minor from opening an account?
