Compliance Question of the Week

Who is the “member/customer” when an account is opened by an individual who has power of attorney (POA)?

It depends.

According to Customer Identification Program (CIP) requirements, a member is defined as “a person that opens a new account.” When the account is opened by an individual who has power of attorney for a competent person, that individual is an agent acting on behalf of the person that opens the account. So, in that situation, the member is the individual on whose behalf the agent has acted and not the person with power of attorney.

If the individual is lacking capacity, the individual with power of attorney will be the member.

 

Interested in learning more?

An upcoming training presented by the Northwest Credit Union Association (NWCUA) promises to help credit unions prepare for and address similar questions about handling and managing accounts. The Account Administration Seminar is a one-day training scheduled for April 4 in Federal Way, Wash., and for April 5 in Tigard, Ore. It will cover the key aspects of opening, maintaining, and closing deposit accounts, including the types of account ownership and how to protect credit unions in disputes among owners and other claimants.

The Account Administration Seminar will also discuss the basic rules governing forged and stolen checks and non-sufficient funds, as well as how the key federal regulations apply to deposit account operations. Hal Scoggins, an attorney with the law firm of Farleigh Wada Witt, in Portland, Ore., will facilitate the training. With a practice that focuses on state and federal regulatory compliance, deposit and lending operations, contract and business matters, corporate governance, CUSOs, and all other aspects of financial service delivery, Scoggins has been providing legal advice to credit unions since 1991.

Registration information for the Account Administration Seminar is available on the NWCUA’s website. Click here for the Federal Way, Wash. seminar or here for the Tigard, Ore. seminar.

 

Related Links

31 CFR 1010.220(a)(2)(i)
FinCEN Guidance on Customer Identification
31 CFR 1020.100 (c)

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

Posted in Compliance, Events, Federal.