Who is the customer when an account is opened by an individual who has power-of- attorney for a competent person who is the named owner of the account?
The CIP rule provides that a customer generally is a person that opens a new account. 31 C.F.R. 103.121(a)(3)(i)(A). When an account is opened by an individual who has power-of-attorney for a competent person, the individual with a power-of-attorney is merely an agent acting on behalf of the person that opens the account. Therefore, the customer will be the named owner of the account rather than the individual with a power-of-attorney over the account. By contrast, an individual with power-of-attorney will be the customer if the account is opened for a person who lacks legal capacity. 31 C.F.R. 103.121(a)(3)(i)(B)(1).
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