What Do Payday Loan Companies Need to Do?
Like all other financial institutions, payday loan companies and other Financial Service Centers must collect and verify client information including: • Name • Date of birth • Address (P.O. boxes not acceptable) • Identification Number (either a tax ID or Social Security number) Official documents may be used in conjunction with identity verification software or services to verify the above information. Thorough identity verification ensures compliance the Patriot Act’s “Know Your Customer” requirement. Once the identity is verified according to USA Patriot Act standards, the clients name needs to be cross-referenced against the Office of Foreign Assets Control’s (OFAC) SDN list. OFAC’s Regulations for Money Service Business are available here. Like with the “Know Your Customer” compliance software, outside vendors supply OFAC compliance software to help payday loan companies satisfy this requirement, too. How Can Lyons Commercial Data Help Satisfy These Requirements? Just as many bank
