The U.S. Patriot Act requires member firms to use the name, address, date of birth, and social security number or tax identification number to independently verify the identity of the customer. This verification can be done with a current driver’s license, passport, or another government-issued identification (a social security card is not acceptable). The verification must be done within a reasonable amount of time after opening the account. The member firm is also required to check if the person is on a known or suspected terrorist list provided by the Office of Foreign Assets Control (OFAC).
These rules are included to detect and deter money laundering and the funding of terrorist organizations.
Records relating to the identification verification must be kept at least five years.
