Welcome to Goodwin's Financial Services News Roundup. Our newsletter highlights important legal, regulatory, and business developments related to financial services and banking.
In this issue
- Agencies Permit Banks and Credit Unions to Obtain Customer TINs from Third Parties
- FDIC Interprets CIP Rule to Allow for Pre-Populated Customer Information at Account Opening
- CFPB Seeks Comment on Increasing Threshold for Defining Larger Participants in Certain Markets
1Agencies Permit Banks and Credit Unions to Obtain Customer TINs from Third Parties
On July 31, the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration, and the Financial Crimes Enforcement Network (FinCEN) (collectively, the Agencies) issued an order aimed at providing banks and credit unions flexibility to use third-party sources to obtain tax identification numbers (TINs), rather than requiring banks and credit unions to obtain the TINs directly from customers. Enacted in 2003, the Customer Identification Program (CIP) rule (31 C.F.R. § 1020.220), which implements Section 326 of the USA PATRIOT Act (the CIP Rule), requires banks and credit unions to verify the identity of any potential customer by obtaining certain identifying information prior to account opening, including obtaining a TIN, if the customer is a US person. Due to recent reluctance by customers to provide their TIN arising from concerns over data breaches and identify theft, the Agencies' new exemption aims to provide banks and credit unions with greater flexibility to change their method of TIN collection, while still requiring banks and credit unions to comply with all other regulatory requirements under the CIP Rule. Use of the exemption is optional, and banks and credit unions are not required to use alternative collection methods.
2FDIC Interprets CIP Rule to Allow for Pre-Populated Customer Information at Account Opening
On August 5, the FDIC issued an interpretation of the CIP Rule to clarify that an FDIC-supervised institution can use information from current or prior accounts or relationships involving the bank, its agents, or other sources (e.g., parent organizations, affiliates, vendors, third parties) to pre-fill information that is reviewed and submitted by the customer. Such pre-populated information will be viewed by the FDIC as satisfying the CIP Rule requirements if (1) the customer has the opportunity and ability to review, correct, update, and confirm the accuracy of the information, and (2) the institution's processes for opening an account that involves pre-populated information allow the institution to form a reasonable belief as to the identity of its customer and are based on the institution's assessment of the relevant risks, including the risk of fraudulent account opening or takeover.
3CFPB Seeks Comment on Increasing Threshold for Defining Larger Participants in Certain Markets
On August 8, the Consumer Financial Protection Bureau (CFPB) issued advance notices of proposed rulemaking for the automobile financing market, consumer reporting market, international money transfer market, and consumer debt collection market, seeking information from market participants to help the CFPB decide whether to propose a rule that would increase the threshold for defining larger participants in each market. Each notice includes a list of questions for commenters, including whether the current threshold is appropriate and how changing the threshold may impact costs for participants and consumers. Comments must be received on or before September 22, 2025.
Check Out Goodwin's Latest Industry Insights
America's AI Action Plan Emphasizes Governance and Risk Management to Promote the Secure and Safe Adoption of AI Tools
On July 23, the Trump Administration released its AI Action Plan (the Plan), a long-anticipated roadmap for the federal government's approach to AI governance that presents a number of implications for businesses globally. While Goodwin has covered the Plan and its three pillars in depth here, we discuss here how the Plan aims to promote rapid adoption of AI tools supported by strong governance and risk management practices, especially those related to safety and security. To read more, click here.
FinCEN to Postpone Effective Date and Reopen Anti-Money Laundering Rule for Investment Advisers
On July 21, the FinCEN announced its intent to postpone the effective date of the Anti-Money Laundering/Countering the Financing of Terrorism Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers and Exempt Reporting Advisers Rule (the IA AML Rule), which will impose new requirements on registered investment advisers and exempt reporting advisers. To read more, click here.
Federal Stablecoin Legislation Poised to Implement Comprehensive Regulatory Framework for Payment Stablecoins
On July 18, President Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act). The statute creates for the first time a comprehensive regulatory regime governing the issuance of payment stablecoins in the United States and providing for the regulation and supervision of payment stablecoin issuers. This summary describes the provisions of the GENIUS Act. To read more, click here.
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