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Can you summarize 31 CFR 1020.100?
Definitions > Definitions.
Short Summary
This section provides definitions for the terms ‘account’ and ‘customer’ for the purpose of part 1020. An account refers to a formal banking relationship established for financial transactions, including deposit accounts, transaction or asset accounts, credit accounts, or other extensions of credit. It also includes relationships for safekeeping services, cash management, custodian, and trust services. However, certain products or services without a formal banking relationship, accounts acquired through specific means, and accounts opened for employee benefit plans are excluded from this definition. On the other hand, a customer is defined as a person who opens a new account, including individuals lacking legal capacity or entities that are not legal persons. However, certain financial institutions, specific individuals, and existing account holders meeting certain criteria are not considered customers. This section does not specify any penalties for non-compliance.
Whom does it apply to?
Banks and financial institutions
What does it govern?
Definitions related to accounts and customers for the purpose of part 1020
What are exemptions?
1. Products or services where a formal banking relationship is not established, such as check-cashing or wire transfer. 2. Accounts acquired through acquisition, merger, purchase of assets, or assumption of liabilities. 3. Accounts opened for the purpose of participating in an employee benefit plan under the Employee Retirement Income Security Act of 1974.
What are the Penalties?
No specific penalties mentioned in this section.
Jurisdiction
U.S. Federal Government