The USA Patriot Act requires bankers to meet face-to-face with people applying to open a bank account. This “Know Your Customer” policy is currently prevalent at most – if not all – banks.
- Identity Verification: In-person visits allow banks to verify the identity of the person opening the account. This helps prevent identity theft and fraudulent activities.
- Regulatory Compliance: Banks are subject to various regulations, including those aimed at preventing money laundering and terrorism financing. In-person verification helps banks comply with these regulations by ensuring that they know the customer.
- Document Submission: Some banks require customers to submit certain documents, such as government-issued identification and proof of address, during the account opening process. In-person visits facilitate the submission and verification of these documents.
- Risk Management: Meeting customers in person allows banks to assess the risk associated with opening an account. It provides an opportunity for the bank to understand the customer’s financial needs and behavior.
- Legal Requirements: Some states may have specific legal requirements regarding the opening of bank accounts, and in-person visits may be mandated to fulfill these requirements.
It is worth noting that not all banks have the same policies, the specific requirements can vary among different financial institutions.
