[theBuckwheat]

Are we headed for two-track banking. I appears to be so.

For people who can identify themselves, the bank insists they must provide their SSN, a copy of a ID document like a driver's license, and other information. The bank must do this in the post-9/11 legal environment that is commonly called KYC or Know Your Customer. There are federal sanctions and fines for banks that do not enforce KYC

For people who obviously are not here legally, and maybe cannot speak English, the bank allows them to open an account with what? Their name and address? Or just a name if they claim they are homeless.

How does the bank comply with KYC regulations for this second group of customers? Is this exempted with a wink and a nod?

One reason for enforcing KYC regs is so the IRS and other government agencies can easily locate your assets so they can enforce compliance and ease collection efforts.

I guess as a trial, I might call my local B of A branch and see if I could open up an Illegal Alien account without a SSN.

[greyfoxx39]

I have BOA accounts, and they have really gone downhill since the merger with MBNA.

[Experiment 6-2-6]

I, too, would like to see how this gets past the Patriot Act and the issue of money laundering...

[kellynla]

"I guess as a trial, I might call my local B of A branch and see if I could open up an Illegal Alien account without a SSN."


Of course you can.

And the dirty little secret is that BofA is not the only bank in Cali doing this. Wells Fargo is another.
Illegals are also obtaining home loans in CA. Two or more families apply together for one home loan.
It is not unusual to find three or more families living in one home.
Illegals have been also obtaining home mortgages for some time now.

[Thunder90]

This is a new way for criminals to bank. If they don't have to show ID, a criminal can claim that he/she is illegal (if they speak Spanish or another foreign language [think Arabic or Farsi]). This could be used to circumvent the Patriot Act rules on banking. It is a Really dumb loophole.

[theBuckwheat]

Here is the way this issue was addressed according to an article on this subject in today's Wall Street Journal:

"Anti-money-laundering regulations passed in the wake of the Sept. 11, 2001, terror attacks put more pressure on banks to verify customers' identity and watch for suspicious transactions, but they don't require banks to ascertain whether account holders are in the U.S. legally. Most banks require a Social Security number or ITIN to open an account, but regulations also allow them to accept other government-issued forms of identification in some instances, including passport numbers, alien identification numbers or any government-issued document with photo showing nationality or place of residence."

[Almondjoy]

Since I work at a bank I can tell you that we do allow people to open an account without a social. However, they do have to provide proof of address. If it's not on a state ID card then they have to bring a bill or insurance card. We also enforce them having to need two proper ID's. If they are foreign then they must provide a Consular ID.. the other ID is typically a Driver Licence or State ID card.