Ranking Member Waters Asks U.S. Financial Agencies to Examine Customer Identification Program to Modernize Rules, Ensure Consumer Protection and Combat Bad Actors (STATEMENT)

Statement

"I understand that the CIP rule's requirement to collect a taxpayer identification number is being interpreted by some regulators to mean that when collecting the SSN, they must collect from customers the full nine-digit number. This made sense when the CIP rule was issued 20 years ago, but today, using advanced identification tools, banks have other means of leveraging minimally collected information to enhance their reasonable belief of the customer's true identity…Further, while new technology is available to help banks, it is also available to help those who would target institutions to steal customers' personally identifiable information. This includes the SSNs of customers, collected to fulfill the CIP rule requirements. Banks report a growing reluctance of consumers to offer their full nine-digit SSN due to the risks associated with identity theft and data breaches in order to obtain credit and other banking services."

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