September 11, 2003
Statement of Adoption and Implementation
Bank of the James, hereinafter “Bank” shall adopt and implement this Customer Identification Program (CIP) as required by Section 326 of the USA PATRIOT Act. The Bank’s CIP consists of reasonable procedures for:
- Verifying the identity of any person seeking to open an account, to the extent reasonable and practicable;
- Maintaining records of the information used to verify the person’s identity, including name, address and other identifying information; and
- Determining if the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the Bank by any government agency.
This program covers formal banking relationships such as deposit accounts, extensions of credit, safe deposit box rentals, cash management, custodian and trust services.
This program is not intended to cover the provision of products and services where no formal relationship is established, such as check cashing, wire transfers, and selling cashier’s checks, money orders, or traveler’s checks; accounts acquired through acquisitions, mergers, or purchases of assets; and accounts opened for the purpose of participation in employee benefit plans established pursuant to the Employee Retirement Income Security Act of 1974 (ERISA).
Appointment of CIP Compliance Officer
The bank’s BSA Officer is appointed as CIP Compliance Officer. The CIP Compliance Officer is responsible for:
- Day-to-day implementation and administration of the bank’s CIP program, including employee training;
- Drafting bank-wide CIP procedures for management review and approval;
- Development of a bank-wide CIP employee training program for management approval; and
- Recommending to management any modifications that may be necessary.
Compliance review, testing and periodic reporting will be performed by the compliance officer.
Customer Information Collection and Verification -
Bank personnel shall employ the following procedures in conjunction with opening an account. Existing customers are exempt from the identification verification process to the extent that the employee has a reasonable belief that the bank has previously verified their identity, and that sufficient records exist to support the previous verification.
The Bank does not open new accounts via the Internet or by mail. AD new account customers are required to be present “face-to-face” before an account will be opened. As part of their training, employees receive a Risk Assessment Matrix (attached) which addresses the degree of inherent risk and verification procedures required for all new account circumstances they should encounter.
At a minimum, employees of the Bank are instructed to obtain the following information from the customer prior to opening an account:
- Date of birth, if the customer/s an individual
- Address, which must be one of the following, as appropriate:
- For an individual, a residential or business street address;
- For an individual who does not have a residential or business street address, an Army Post Office (APO) or Fleet Post Office (FPO) box number, or the residential or business street address of the next of kin or of another contact individual; or
- For a person other than an individual (such as a corporation, partnership or trust) a principal place of business, local office, or other physical location; and Identification number, which must be one of the following, as appropriate:
- For a U.S. person, a taxpayer identification number;
- For a non-U.S. person:
- A taxpayer identification number;
- Passport number and country of issuance;
- Alien identification card number;
- Number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard; or
- If a foreign business or enterprise does not have an identification number, the employee must request alternative government- issued documentation certifying the existence of the business or enterprise. Exception for persons applying for a taxpayer identification number:
- A copy of the application for a TIN filed prior to opening the account. Subsequent to opening the account, the employee will follow up with the customer to obtain the TIN within 45 days after the account is opened. Failure to provide the TIN within 45 days of opening an account will result in closing of the account and return of the account balance to the customer.
- For an individual: an unexpired government-issued identification evidencing nationality or residence and bearing a photograph or similar safeguard, such as a driver’s license or passport.
- For a person other than an individual (such as a corporation, partnership or trust), documents showing the existence of the entity, such as certified articles of incorporation, a government-issued business license, a partnership agreement, or trust instrument.
The following procedures shall be employed in situations where the customer is unable to produce the primary identification requested:
- Examination of an expired passport, driver’s license, or other government issued ID card, bearing a photograph of the customer; or
- Contacting the customer after the account is opened, at the address and/or telephone number provided at account opening; or
- Obtaining a current financial statement and verifying the data provided therein; or
- Contacting other financial institutions with which the customer has previously maintained a relationship; and
- Verifying information provided through Equifax or Trans Union.
Lack of Verification
Should an occasion arise when an employee of the Bank cannot, based on the verification procedures outlined herein, form a reasonable belief that they know the true identity of a customer, the employee should not open an account or proceed to consummate and fund a loan.
Documentation obtained and utilized to verify the identity of customers will be described in the account records (signature cards, credit application, etc.) and retained for the period during which the account (deposit) is open or outstanding (loan), or five years after the account is closed or becomes dormant (credit card) as well as for a period of five years following the closing of the account or payment in full of the loan. Documentation will include:
- A copy or description of any document that was relied on for the verification of the customer’s identity. The retained information shall reflect any identification number, the place of issuance and, if any, the date of issuance and expiration date;
- Certified Articles of Incorporation, Partnership or LLC Agreement, government-issued business license, or trust instrument;
- A copy of the ChexSystems scan and/or a copy of the credit report from Equifax or TransUnion; and
- A copy or description of the resolution of any substantive discrepancy discovered when verifying the identifying information obtained.
Comparison with Government Lists
The Bank shall compare all new customers against a government issued list of known or suspected terrorists or terrorist organizations. The Bank utilizes the list provided by the Department of Treasury, commonly known as the OFAC (Office of Foreign Asset Control) List.
All new deposit customers are subject to a New Account OFAC scan through ChexSystems prior to account opening. In addition, the Bank has contracted with its data processing service provider, FISERV - Atlanta, for periodic OFAC monitoring services. As part of our OFAC monitoring agreement, FISERV - Atlanta, also performs a weekly scan of all new accounts and existing databases. FISERV - Atlanta produces periodic reports reflecting the number of accounts scanned for each application and possible matches. This report is reviewed by bank personnel for possible matches. Any matches are referred to the bank’s BSA Officer for further investigation and resolution. In addition to the OFAC scans, the BSA Officer is designated as the contact person to receive e-mail transmissions of the FBI Control List.
The following notice is prominently displayed at all locations where deposit accounts are opened and where loans are consummated:
United We Stand
On September 11th, 2001 our lives changed forever when our country was attacked. In an effort to protect you and our country, President Bush signed the USA Patriot Act into law on October 26, 2001.
To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
When you open an account, we will ask your name, address, date of birth, and other information that will allow us to identify you. We will ask to see your driver’s license or other identifying documents and make copies for your account file at the Bank. This same type of identification will be requested of others that you add to your existing account. In all cases, protection of your identity and the confidentiality of this information is our pledge to you.
We proudly support all efforts to protect and maintain the security of our customers and our country.
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