Which of the following information items are needed to open a cash account for a customer?

Members of the military (requires self disclosure) and customers ages 24 and under and those 65 and over pay no monthly maintenance fee. All others can have it waived by meeting any one of the following criteria: Have combined monthly direct deposits totaling $1,000 or more; or keep a minimum average account balance of $1,500 or more; or hold an eligible U.S. Bank credit card; or qualify for one of the four Smart Rewards™ tiers (Primary, Plus, Premium or Pinnacle).

The average account balance is calculated by adding the balance at the end of each calendar day in the statement period and dividing that sum by the total number of calendar days within the statement period. Other fees may apply.

Please refer to the Consumer Pricing Information disclosure for more details.

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Mobile device access fees – The U.S. Bank Mobile app is free to download. Your mobile carrier may charge access fees depending upon your individual plan. Web access is needed to use the Mobile app. Check with your carrier for specific fees and charges. Some mobile features may require additional online setup. Any fees for optional transactions will be identified during registration for these services and during their use.

Text messaging fees – For text alerts, standard messaging charges apply through your mobile carrier and message frequency depends on account settings. Check with your carrier for specific fees and charges.

The information provided in this guide is intended to assist UCSC staff members in properly accepting payments, handling cash, making deposits, and recording cash transactions in campus accounting records. Special requirements and restrictions may apply in certain situations.

In these cases, the UC Cash Handling Policy should be consulted for a complete explanation of cash handling policy and requirements.

Banks are required by law to have a customer identification program that includes performing due diligence (also called Know Your Customer) in creating new accounts by collecting certain information from the applicant. An account is a formal banking relationship established to provide or engage in services, dealings, or other financial transactions including a deposit account, a transaction or asset account, a credit account, or other extension of credit. The term includes a relationship established to provide a safety deposit box or other safekeeping services, and cash management, custodian, and trust services.

Each bank's customer identification program must include procedures for verifying the identity of each customer. At a minimum, when opening a new account, a bank must obtain the following information as part of its program:

• Name
• Date of birth (for an individual)
• Address
• Identification number

The required identification number for a U.S. citizen is a Social Security number and for a U.S. company is an employer identification number. For all others, an identification number is one or more of the following:

• Taxpayer identification number
• Passport number and country of issuance
• Alien identification card number
• Number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard

The bank must then verify the accuracy of the information the applicant provided by reviewing documents, such as a driver's license or passport. It can also verify the information by other means, such as comparing it with information from a credit reporting agency or by checking the applicant's references with other financial institutions.

Refer to 31 CFR 1020 "Rules for Banks."

Last Reviewed: April 2021

Please note: The terms "bank" and "banks" used in these answers generally refer to national banks, federal savings associations, and federal branches or agencies of foreign banking organizations that are regulated by the Office of the Comptroller of the Currency (OCC). Find out if the OCC regulates your bank. Information provided on HelpWithMyBank.gov should not be construed as legal advice or a legal opinion of the OCC.

Brokers generally request personal information from their customers, including financial and tax identification information, to comply with U.S. government laws and rules, as well as rules imposed by self-regulatory organizations (SROs).  Brokers request personal information from new customers as well as from customers who have had long-standing relationships with their firms.

Here are some of the reasons why brokers need to gather this information:

SUITABILITY REQUIREMENTS

Under SRO rules, when a broker recommends that a customer buy or sell a particular security, the broker must have a reasonable basis for believing that the recommendation is suitable for that customer.  In making this assessment, the broker must consider the customer’s risk tolerance, other security holdings, financial situation (income and net worth), financial needs, and investment objectives.

Information on FINRA’s suitability rule, along with links to other materials concerning suitability, may be found in the FINRA Rules.

RECORD-KEEPING REQUIREMENTS

SEC Rule 17a-3(17) requires that brokerage firms create a record for each account with an individual customer that includes the following information:

• Customer name
• Tax identification number (e.g., Social Security number)
• Address
• Telephone number
• Date of birth
• Occupation and employment status
• Whether the customer is employed by a brokerage firm
• Annual income
• Net Worth (excluding value of primary residence)
• Account investment objectives

Brokers must make a good faith effort to obtain this information. However, if the customer neglects or refuses to provide the information, or is unable to provide it, then the rule excuses the broker from obtaining it. 

The SEC’s rule also requires a brokerage firm to periodically send this information (excluding the customer’s tax identification number and date of birth) to its customers to verify whether the information is accurate.  Brokerage firms have some flexibility as to how they send this to the customer and may incorporate it into a customer’s account statement.  These recordkeeping requirements also help ensure that brokerage firms have an up-to-date understanding of their customers’ financial situation and investment objectives.

ANTI-MONEY LAUNDERING/ANTI-TERRORIST FINANCING REQUIREMENTS

In addition, brokers must comply with a customer identification rule the SEC issued jointly with the Department of the Treasury to implement a provision of the USA Patriot Act of 2001.  This rule requires brokers to put procedures in place to verify the identity of any person seeking to open an account to maintain records of the information used to verify the person's identity; and to determine whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to broker-dealers by any government agency.  Under this rule, brokers are required to collect certain identifying information from customers opening new accounts including, at least, the following information:

• Customer name
• Address
• Identification number (or SSN for U.S. citizens)
• Date of birth

This requirement sets the minimum information brokers must obtain from their customers.  Brokers may require customers to provide them with information beyond this minimum requirement.

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