BSA, ACP, CIP & U

Chances are that if you understand the title of this article you handle compliance for your credit union.

Both Oregon and Washington are among the 30 states that offer Address Confidentiality Programs (ACP). The goal of these important programs is to help crime victims (specifically domestic violence, sexual assault, trafficking, and stalking) stay safe. ACP is designed to prevent offenders from using state and local government records to locate their victims. These programs act as mail forwarding services. The participants give out the ‘substitute’ address of the ACP instead of the address where they live. The ACP staff then repackages and forwards the participant’s mail to the address on file with the ACP.

The rules implementing the Bank Secrecy Act (BSA) require credit unions to implement a Customer Identification Program (CIP). The program is designed to ensure that a credit union forms a reasonable belief that it knows the true identity of its members. The rules also require that a credit union obtain from an individual member a residential or business street address. If the member does not have a residential or business street address, the rules permit the member to provide a “residential or business street address of next of kin or of another contact individual.

The US Department of the Treasury provided guidance FIN-2009-R003 concerning CIP and Address Confidentiality Programs. In the guidance, FinCEN authorizes the establishment of an exception to the requirement that credit unions obtain a member’s residential of business street address. The exception is: “a customer who participates in a state-created ACP shall be treated as not having a residential or business street address and a secretary of state, or other state entity serving as a designated agent of the customer consistent with the terms of the ACP, will act as another contact individual for the purpose of complying with FinCEN’s rules. Therefore, a credit union should collect the street address of the ACP sponsoring agency for purposes of meeting its CIP requirement.”

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, or email us at compliance@nwcua.org.

Posted in Compliance.