On July 31, 2025, the Federal Reserve Board joined other federal financial institution regulatory agencies, as well as FinCEN, in providing banks the flexibility to use an alternative method for collecting certain customer identification information. Specifically, the agencies now permit banks and credit unions to obtain a tax identification number from a third party, rather than directly from the customer.
The agencies’ action will grant banks flexibility in how they obtain this information, while ensuring that risk-based procedures continue to underpin verification of a customer's identity. The Fed clarified that the the flexibility is optional and banks are not required to use alternative collection methods.
Read the FRB’s press release here.