With S. 2155 signed into law, credit unions are curious about when its regulatory relief provisions take effect, and if any guidance will be available. CUNA’s compliance staff has collected resources, NCUA has finalized its one-to-four non-owner occupied rule, but there’s more in the bill.
One provision in the bill is designed to allow consumers easier access to online banking. And while no guidance has officially been issued yet, there appears to be some changes that could impact a credit union’s member identification policy under the Bank Secrecy Act.
One provision allows a financial institution to “record personal information from a scan of the driver’s license or personal identification card of the individual, or make a copy or receive an image of the driver’s license or personal identification card of the individual, and store or retain such information in any electronic format.”
While some credit unions are already able to do this, some state laws prohibit copying of driver’s licenses. S. 2155 states that its provisions supersede or pre-empt any state law that conflicts with the provision, “but only to the extent of such conflict.”
The bill also states “except as required to comply with federal bank secrecy laws, a financial institution may only use the information obtained” through scanned IDs to:
BSA regulations do not require credit unions to make copies of identification cards. Section 31 CFR 1020.220 requires financial institutions to “record a description of any documents that were relied on, noting the type of document, any identification number contained in the document, the place of issuance and, if any, the date of issuance and expiration date.”
Copying or scanning the identification card counts as recording the information, but BSA regulations do not require it.
CUNA compliance staff will provide updates as more guidance on S. 2155 provisions becomes available.