Saturday, December 26, 2015


They may be touted as acceptable, as a primary means of identification, when opening a bank account, or cashing a check, but many New York-area commercial banks are rejecting the New York municipal identification card, commonly known as the IDNYC. While the card has been approved by Federal regulators, to satisfy Know Your Customer and AML requirements, many NYC financial institutions do not accept them.

While we must solve the nagging problems of reducing the higher costs that "unbanked" individuals face, the NYC ID card, in my humble opinion is flawed, both in the ease through which it can be acquired by potential money launderers, and the lack of adequate security protections built into the card itself.The big banks have correctly, utilizing their risk-based analysis, determined that money laundering & financial crime can be facilitated, if the fraudsters and laundrymen, obtain and use, the IDNYC.

Remember the money laundering that followed the adoption of the Mexican Consular Identification card ? Smurfs could move large sums of dirty money into NY banks, should political correctness cause these banks to accept the NYC municipal ID card. While many banks in the west and southwest have allowed their local municipal ID cards to be accepted for compliance purposes, New York banks are to be commended for their actions. 

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