CUNA Mutual Group Risk Alert: How Senate Bill 2155 Changes Retaining Images of IDs

The recently passed Senate Bill 2155, Economic Growth, Regulatory Relief and Consumer Protection Act, contains a number of provisions that impact credit union processes - including the copying and scanning of driver’s licenses and personal identification cards. Under the new law, credit unions can copy or scan a person’s driver’s license or personal identification card for the purpose of verifying the person’s identity but must delete the copy or image after use.

Senate Bill 2155, Economic Growth, Regulatory Relief, and Consumer Protection Act, was signed into law on May 24, 2018. When a credit union receives an online request to open an account or obtain a financial product, Section 213 allows credit unions to record personal information from a copy or image of a person’s driver’s license or personal identification card and to store the information electronically for the purpose of verifying the authenticity of the driver’s license or personal identification card, verifying the identity of the person, or complying with other legal requirements. However, the new law requires credit unions to delete the copy or image after use.

Many credit unions have retained photocopies or images of members’ government-issued photo IDs as part of their Customer Identification Program (CIP). Credit unions often store images of members’ government-issued photo IDs on the system for tellers to easily verify the identity of members wishing to conduct transactions at a branch.

CIP rules under Bank Secrecy Act (BSA) regulations (§1020.220) require credit unions to verify the identity of new members. Credit unions must obtain the following information from new members at account opening:

  • Name;
  • Date of birth;
  • Address; and
  • Identification number.

Verification of this information must be through documentary and/or non-documentary methods. The documentary method of verifying the information involves reviewing government-issued photo ID. For record-keeping purposes, there must be record of the type of document used including the identification number, place of issuance, date of issuance, and expiration date. The rules do not require retaining a copy or image of the document.

It should be noted that some state laws prohibit copying driver’s licenses. In addition, the Department of Defense prohibits members of the military from allowing military IDs to be copied or scanned.

Risk Mitigation
If you are currently retaining copies or images of member driver’s licenses or other forms of identification, consider the impact of Senate Bill 2155. It is possible that additional guidance may be issued. Your compliance staff should continue to monitor the new law for additional guidance. 

Risk Prevention Resources
Access CUNA Mutual Group’s Protection Resource Center at cunamutual.com for exclusive risk and compliance resources to assist with your loss control. The Protection Resource Center requires a User ID and password.

In addition, review these resources to learn more: