Kenneth Rijock

Kenneth Rijock

Sunday, January 3, 2016

IF YOUR STATE HAS NOT COMPLIED WITH DHS REQUIREMENTS ON DRIVERS' LICENSES, SHOULD YOU STILL ACCEPT THEM AT ACCOUNT OPENING ?


According to the Real ID Act of 2006, all the states in the US should have issued issued enhanced drivers' licenses; at least half of them have not yet complied, and at least two states' licenses are not valid for entry onto a commercial aircraft, or for entry in Federal buildings, as of 1 January 2016. What's wrong with this picture ? Many states are on their second extension, which expires in late 2016. This represents a clear and present danger for compliance programs. Perhaps the governor of one of the non-compliant states would like to explain himself, when his state's licenses are used to facilitate a terrorist act in the United States. We call this legislative malpractice.

Drivers' licenses, according to the Act, must be tamper-proof, and counterfeit-resistant, and must state the legal (immigration) status of the holder. In an age of global terrorism, not to mention rampant financial crime, most notably money laundering, compliance officers should ask themselves whether their risk-based compliance program can continue to rely upon the non-conforming licenses ?

It is humbly suggested that you hereafter require a supplemental, photo ID, to complete the customer identification process. An ID from a Fortune 500 company, a VA ID card, a concealed weapons permit, or any number of officially-issued identification cards will suffice, for when you accept, as sole proof, a drivers' license, which may be now sub-standard under Federal law, at account opening, you may later be judged to have failed in your compliance duties, if the new customer turns out to be a terrorist financier, or major money launderer.


Update your new account requirements, in writing, so that there will be no waivers granted to clients by "helpful" new accounts staff. If the TSA will no longer accept some of the state drivers licenses, to allow one to board an aircraft, you should not either; get a trustworthy second from of identification.



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