On July 23, 2002, the Department of the Treasury, through the Financial Crimes Enforcement Network (FinCEN), issued proposed regulations to implement Section 326 of the USA PATRIOT Act that would require banks, savings associations, credit unions, securities brokers and dealers, mutual funds, futures commission merchants and introducing brokers, credit unions and private banks and trust companies that do not have a federal regulator to implement Customer Identification Programs that (i) establish reasonable procedures to verify the identity of any person seeking to open an account, (ii) maintain records of the information used to verify the person’s identity and (iii) determine whether the person appears on government lists of known or suspected terrorists or terrorist organizations. The original effective date of the regulations was October 25, 2002. The Treasury Department has issued a press release advising all financial institutions that they will not be required to comply with Section 326 of the USA PATRIOT Act or the proposed rules until final implementing regulations are issued and become effective. The final rules will provide financial institutions with a reasonable amount of time in which to come into compliance.

    For more information regarding this Alert or for assistance in drafting a Customer Identification Program or other Bank Secrecy Act policies and procedures, please contact Darrell Dreher at (614) 628‑1601 or [email protected] .