Continued on page 16 A: Yes, that is the general understanding (though you might want to consult with the bank’s legal counsel to understand what is considered an ownership interest in your state). “Ownership interest” does not include inchoate rights such as dower (or curtesy, the male/ husband’s equivalent of dower) according to the Official Staff Commentary on Regulation Z. EFTA. Q: When crediting back an amount from an ACH dispute, we call the customer. If no contact is made, should a letter be sent? A: An attempted phone call does not “provide notice” to the customer. Yes, the bank is permitted to notify the customer either in writing or orally (other than if it finds no error), but the key is to notify them – not just try to notify them. Written notices (with copies to file) are generally a better way to document that a required notice was given. BSA. Q: We are in the process of developing an online account opening. We have a lot to do yet, but our core processor is making our go-live date next week. A: I am looking at the customer identification program (CIP) section of our BSA Policy and identification we require for in-person account opening. I am getting pushback about requiring secondary identification (ID), as it will slow the online opening process, and we are not sure if the product will even ask for a secondary ID. It initially will not be an issue because only existing non-business customers will be able to open accounts online, and the option to do so will be contained within online retail banking. We know the system will require a primary ID. But after we open the product up to new customers, it will be more crucial. I am trying to make the account opening process consistent across both channels. I am looking at the FFIEC BSA/AML Examination Manual, and it doesn’t require but does encourage banks to review more than one document for identification. Do you know how other banks are dealing with the secondary ID issue for online account opening? A: BSA requires a “risk-based” approach, and online account opening is generally considered a higher risk. As you noted, there are no specific guidelines for secondary ID requirements. Some banks require secondary IDs for online account opening and have not reported any issues. With respect to the online platform/system, the bank should ensure that it meets its CIP requirements. Before the bank opens this up to everyone, it may have to find a new way to do CIP. There are numerous companies out there that will do it electronically for the Closing SBA loans keeps doors open. Call 800.340.7304 to start www.holtandmon.com Your customers have never needed capital more than they do right now. Plus you need to offset narrowing margins by increasing noninterest fee income. SBA/USDA lending is the perfect answer. And ICBA recommends just one provider to make the process hassle-free: Holtmeyer & Monson. Give customers exactly what they need, at no net cost to your bank. Small businesses count on your expertise. You can count on ours. The Community Banker 15
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