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Can I collect bank account information from participants in Texas? What are the requirements?

Based on the context documents provided, you can collect bank account information from participants in Texas, but there are legal requirements that must be followed.

Requirements for Collecting Bank Account Information in Texas

Tex. Fin. Section 277.002 requires financial institutions to obtain certain information from applicants or account holders as a condition of opening or maintaining a business checking account. The required information depends on the type of business entity. For a sole proprietorship, the financial institution must obtain the name of the business owner, the physical address of the business, the home address of the business owner, and the driver’s license number of the business owner or the personal identification card number issued to the business owner by the Department of Public Safety. For a corporation or other legal entity, the financial institution must obtain a copy of the business’s certificate of incorporation or a comparable document and an assumed name certificate, if any [1.1].

Confidentiality of Bank Information

Confidentiality of bank information is also an important consideration. The Texas Department of Banking recognizes the need for financial institutions to maintain confidentiality regarding their financial condition and business affairs. Inappropriate disclosures of confidential information can result in substantial harm to financial institutions and those persons and entities that have relationships with them. Therefore, the department has established policies to protect the stability of financial institutions by preventing disclosures that could adversely impact them [3.1].

Additional Requirements for Foreign Bank Branches and Agencies

Foreign bank branches and agencies operating in Texas are subject to additional record-keeping requirements. They must maintain certain records in English or accompanied by an English translation, including records required under the Finance Code, Chapter 204, and separate accounting records relating to their assets and liabilities. They must also maintain records of all credit balances, a list of all representative offices, loan production offices, or other subsidiaries maintained in Texas, and any other records that the banking commissioner may require [2.2].

Requirements for Licensed Authorized Organizations or Units

Licensed authorized organizations or units that operate bingo games in Texas must maintain records to substantiate bingo expenses. These records must include information about the items purchased or services provided, including the name and contact information of the person or entity selling the goods or providing the service, an adequate description of goods or services purchased, the quantity of each product purchased or service received, the price of each product purchased or service received, the total dollar amount billed, and the date of the transaction. They must also maintain records to document the allocation method for bingo expenses which are shared by organizations in a hall, and the allocation method for expenses that are divided between bingo and non-bingo operations of the organization and the allocation of the expenditure between bingo expense and charitable distribution [4.1].

Conclusion

In summary, you can collect bank account information from participants in Texas, but there are legal requirements that must be followed. Financial institutions must obtain certain information from applicants or account holders as a condition of opening or maintaining a business checking account, and confidentiality of bank information is also important. Foreign bank branches and agencies operating in Texas are subject to additional record-keeping requirements, and licensed authorized organizations or units that operate bingo games in Texas must maintain records to substantiate bingo expenses and document the allocation method for expenses.

Source(s):
Jurisdiction

Texas