Questions and Answers

The customer identification program provisions under the Bank Secrecy Act require verification of the identities of customers.  “Customer” is defined as a “person that opens a new account”.  Regulatory guidance defines “person” to include trusts and states that in the case of a trust account, the ‘customer’ would be the trust.  Thus it is clear that the identity of the trust must be verified. 

The identity of a trust maybe verified by reviewing a copy of the trust agreement, a tax statement or some other method.

If the identity of the trust cannot be adequately verified or the situation presents heightened risk, institutions are required to go beyond the trust and verify the identity of those with control over the trust, typically the trustee.

Your policies and procedures should address how you will verify the identity of the trust and when you will go beyond and verify the identity of the trustee as well.