Fed to Provide Banks Flexibility on Collecting Customer ID Info

The Federal Reserve will provide banks flexibility for collecting certain customer information by allowing lenders to obtain a tax identification number from a third party rather than directly from the customer.

The central bank said under a requirement implemented in 2003, lenders are required to verify the identify of a potential customer by obtaining certain information before opening an account. It noted there have been “considerable changes” in the way that customers receive financial services since then.

“Today’s action will grant banks flexibility in how they obtain this information, while ensuring that risk-based procedures continue to underpin verification of a ...