FDIC Acting Chair Supports Easing of CIP Requirements

FDIC Acting Chair Travis Hill supported efforts to update FinCEN's Customer Identification Program requirements "to eliminate frictions for customers seeking relationships with banks and FinTechs."

In a letter to FinCEN, Mr. Hill said changes would allow banks to collect only the last four digits of a Social Security number ("SSN") when customers open new accounts.

Under the CIP rule, banks must collect a taxpayer identification number ("TINs") from US customers who open accounts, usually a SSN. FinCEN had previously requested feedback to understand the potential risks and benefits if banks were permitted to collect partial SSN information and subsequently use reputable third-party sources to obtain the full SSN prior to account opening. (See related coverage.)

Mr. Hill noted that "[f]ederal authorities have long allowed banks to onboard credit card customers in this way" and that FinTechs already use this method by obtaining customer consent to retrieve full TINs from a "trusted third-party source such as a credit bureau."