Opening Deposit Accounts for Foreign-Born Persons

With Mary Beth Guard and Ken Golliher

Opening Deposit Accounts for Foreign-Born Persons

With Mary Beth Guard and Ken Golliher
  • 1 Video
  • 4 PDFs
  • 2.0 hrs
Course description

You think that the Bank Secrecy Act and the Internal Revenue Code have identical requirements for accounts opened for non U.S. persons? Think again. Plus, did you know you need to differentiate between the very different types of foreign-born individuals to know how to verify identity?



WHAT?
Complying with complex and sometimes conflicting IRS and CIP requirements when opening a deposit account is a challenge. However, when that deposit account is being opened by a non U.S. Person the process moves to the next level of complexity. Incorporating the meaning of terms like "matricula consular;" "visa;" "substantial presence test;" and even non "U.S. Person" (which CIP defines differently than the Internal Revenue Code) requires patience and precision.


WHY?
Whether the depositor is a college student or a permanent resident of the U.S., the bank has to know what the law requires. The bank must have the same amount of knowledge whether it has one or 1,000 non U.S. person customers.


Beginning with the 2013 information reporting year, banks had new responsibilities for information reporting on non U.S. persons. Reporting requirements that originally applied only to Candians were expanded to include residents of many other countries. So, identifying these customers and perhaps expanding due diligence efforts at account inception is critical.



Verifying identity, whether it is through documentary or non documentary means is the next challenge. Can the bank reasonably require U.S. issued identification only or should it accommodate non U.S. identification and, if so, what types? Is the bank required to establish that a non resident alien entered the country legally before it opens the account?


In some respects, the identification element is more complex than that regarding the identifying number - identification requirements are wholly a matter of the bank's discretion, but the Bank Secrecy Act requires you to employ methods of identity verification that allow you to form a reasonable belief you know the true identity of the customer. If you are using documentary verification on foreign individuals, you at least need to know the basics about the documentation that may be available and the expected characteristics of that documentation.

PROGRAM CONTENT?

  • Identifying number requirements for CIP purposes
  • Correct TINs for IRS purposes
  • Information reporting requirements for non U.S. Persons that began in 2013
  • Newly issued ITINs expire after 5 years
  • Four categories of foreign-born potential customers
  • All about identifying documents - from "green cards" to passports
  • Visas and Visa waiver countries
  • Admission records for non U.S. persons
  • Identifying and listing acceptable identification documents in your CIP;
  • Security features on various ID documents that may be presented by a non U.S. person
  • The possibility of using non documentary verification
  • When is an ITIN acceptable
  • Acceptability of SSNs issued "for work purposes only"
  • TIN verification methods
  • Effects of the Real ID Act of 2005 on banks
  • Bank responsibility for filing SARs on receipt of fraudulent ID

This Webinar focuses on opening bank deposit accounts for non U.S. persons who are individuals. Thus, the only variety of W-8 discussed is the W8-BEN and the types of documentary verification that might be acceptable are limited to those used by individuals. The program does not cover reporting on portfolio interest, loans, or accounts subject to FACTA.


WHO?
The program is designed for operations personnel as well as compliance officers and auditors employed by banks, thrifts and credit unions. It focuses on specific elements of Bank Secrecy Act compliance and compliance management, not the regulation in its entirety.

Course Curriculum

Video
122:09
Opening Deposit Accounts for Foreign-Born Persons
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Materials
Materials - Ken
Materials - Mary Beth
Slides
Questions and Answers
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Instructor

Mary Beth Guard and Ken Golliher
Mary Beth Guard and Ken Golliher

Ken is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced banker with a unique ability to reduce complex legal concepts to plain English. He has explained the "why" and "how" of regulations to thousands of financial institution personnel and examiners. Ken's banking career began in 1972 and includes serving as a teller, commercial operations manager and as trust department legal counsel in a state and a national bank. For ten years he headed the education division of a regional consulting firm for financial institutions. He has served on the faculty of the LSU Graduate School of Banking, the OTS' Level I Compliance School and the FDIC's Advanced Consumer Protection school for examiners. He has presented seminars in more than 25 states and has served as an instructor at compliance schools sponsored by the Illinois, Indiana, Iowa, Georgia, Kansas, Kentucky, Nebraska, Oklahoma, Pennsylvania and Texas bankers associations. He is a member of the Society for Applied Learning Technology. He is also a "BOL Guru."Ken is a principal with Pegasus Educational Services, LLC, a training firm headquartered in Louisville, Kentucky. He is an experienced banker with a unique ability to reduce complex legal concepts to plain English. He has explained the "why" and "how" of regulations to thousands of financial institution personnel and examiners. Ken's banking career began in 1972 and includes serving as a teller, commercial operations manager and as trust department legal counsel in a state and a national bank. For ten years he headed the education division of a regional consulting firm for financial institutions. He has served on the faculty of the LSU Graduate School of Banking, the OTS' Level I Compliance School and the FDIC's Advanced Consumer Protection school for examiners. He has presented seminars in more than 25 states and has served as an instructor at compliance schools sponsored by the Illinois, Indiana, Iowa, Georgia, Kansas, Kentucky, Nebraska, Oklahoma, Pennsylvania and Texas bankers associations. He is a member of the Society for Applied Learning Technology. He is also a "BOL Guru."



Mary Beth Guard currently serves as Executive Editor of BankersOnline.com, CEO of Glia Group, Inc. and Executive Editor of BankingQuestions.com. Since graduating from law school in 1980, Mary Beth has focused her work almost exclusively on the banking industry. Previously, Mary Beth served as EVP/General Counsel and COO for the Oklahoma Bankers Association, EVP of Specialized Services for Thomson Financial Publishing, and General Counsel for the Oklahoma State Banking Department. Mary Beth is on the advisory board for Bankers' Hotline. She has presented training programs for virtually every major national financial industry association, as well as more than a dozen state bankers associations and a host of other organizations. In addition, Mary Beth has written more than a thousand banking-related articles and is a BOL Guru.