CIP and Signers for Municipal Accounts
Issue/Inquiry
The Bank would like to open deposit accounts for a new municipal customer. Typically, when an account is opened for a business customer, the Bank will collect Customer Identification Program (“CIP”) information on the account signers in addition to the customer because this helps identify the signer if they contact the Bank regarding the account. Municipal customers tend to push back against this requirement and may be only willing to provide limited information regarding account signers. What does the law require and what is the best practice in this situation?
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