In the current environment, identity verification is more crucial than ever before. Many regulations require that information or services be provided only to a customer after verifying the customer’s identity. For example, under FERPA, institutions can only release certain information about a student. The only way to ensure that information is released only to the authorized individual(s) is to verify the person’s identity prior to releasing information. To rely on the properties and functions of a university identification card, it is essential that the student’s true identity is verified prior to issuing the ID card (regardless of who physically issued the ID card).
Under the Patriot Act and other banking regulations, banks and other parties that handle or transmit funds must have a Customer Identification Program (CIP). Many laws and regulations are primarily implemented in the banking industry, but all entities handling large sums of money may become subject to regulatory scrutiny. A CIP is necessary to comply with Section 326 of the U.S.A. Patriot Act, passed in an effort to prevent terrorist funds from flowing within the United States banking system. The CIP ensures that required identity information is not only verified, but is also retained properly. Given the above considerations, BankMobile has worked with the FDIC and other regulatory agencies to develop a Customer Identification Program that not only meets regulatory requirements, but ensures information and customer funds are protected as well as possible. Proper identification ensures that funds continue to be disbursed to the correct recipient, and maintains regulatory compliance and crime prevention.