CCUL Headlines: Compliance

The REAL ID Act and your CIP Program

Thursday, September 13, 2018   (0 Comments)
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In response to the 9/11 terrorist attacks, Congress passed the REAL ID Act in 2005 to establish minimum security standards for state-issued driver licenses and IDs to help prevent fraudulent identification, and starting October 1, 2020, the Act becomes effective.

That said, there has been a bit of confusion surrounding REAL ID and under what circumstances it’s required to have one. According to the Act, a person only needs a REAL ID driver’s license or identification card if they plan to board a domestic, commercial flight; enter a secure federal building; or visit a military installation on or after October 1, 2020, and does not have another federally approved ID (ex. unexpired US Passport or military ID) to use for those purposes.

Credit union members may still use their non-REAL ID to establish identity for the purpose of opening an account at the credit union. Both REAL IDs and non-REAL IDs can be accepted to prove identity, address, etc. for purposes of the financial institution’s Customer Identification Program (CIP).

Other scenarios where a REAL ID driver's license or ID card is NOT required include:

  • Drive
  • Vote
  • Apply for or receive federal benefits for which you’re entitled (Veterans Affairs, Social Security Administration, etc.)
  • Enter a federal facility that does not require an ID (i.e. a post office)
  • Access a hospital or receive life-saving services
  • Participate in law enforcement proceedings or investigations (serve on a federal jury, testify in federal court, etc.)

Also, under this law, Federal agencies will be prohibited from accepting driver’s licenses and ID cards from states not meeting the Act’s minimum standards. Thankfully, North Carolina and South Carolina are REAL ID compliant.

“In January, we held a panel discussion at our BSA/AML Conference where the DMV Commissioners from NC and SC shared an update on the REAL ID Act,” said Allison McClellan, compliance coordinator for the Carolinas Credit Union League. “They provided participants with informative materials, and explained the REAL ID rules and usage to make sure our member credit unions were aware to not turn away standard, valid ID.”

Presentations on advanced account issues will be included in the League’s upcoming Compliance Conference in October and at the BSA/AML Conference in January 2019, where this topic will again be covered.

For more information on state-specific REAL ID requirements, see the resource links below.

 

Additional Resources

SC DMV | Real ID

NC DMV | Real ID

DHS | Real ID


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PO Box 1787
Columbia, SC 29202

800-822-8859 Phone
803-732-4268 Fax