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ALEXANDRIA, Va.-NCUA, along with its fellow financial regulators issued a joint proposed rule by the U.S. Department of Treasury requiring certain financial institutions, including credit unions, to establish minimum procedures for identifying and verifying the identity of customers/members seeking to open new financial accounts. Credit unions and other financial institutions subject to the proposed rules would be required to establish programs specifying procedures for obtaining identifying information from customers/members seeking to open new accounts. This identifying information would be essentially the same information currently obtained by most financial institutions and for individual customers/members generally, including their name, address, date of birth and an identification number (for U.S. persons, a social security number and for non-U.S. persons, a similar number from a government-issued document). The rule takes into account an individual institution’s size, location, and type of business. The rule’s purpose is to protect the U.S. financial system from money laundering and terrorist financing. The proposed rule implements section 326 of the USA PATRIOT Act, which directs the issuance of regulations requiring financial institutions to implement reasonable procedures for verifying the identity of any person seeking to open an account, to the extent reasonable and practicable; maintaining records of the information used to verify the person’s identity and; determining whether the person appears on any list of known or suspected terrorists or terrorist organizations. A final rule must be effective by October 25, 2002. Credit unions are encouraged to submit comments on the proposed rule within 45 days of its publication in the Federal Register, which was expected to occur shortly after deadline. [email protected]

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