SSN Policy Manual

Financial Issues

Financial institutions are tightly regulated by federal law (primarily United States Code Title 12, Banks and Banking, and Title 31, Money and Finance) and often refer clients to various laws and regulations as their reason for doing or not doing certain things. When an unenumerated citizen attempts to enter a relationship with a financial institution they are usually rejected because the institution wrongly believes that federal law requires them to obtain a social security or taxpayer ID number from each customer. Financial institutions usually respond with a canned statement such as: 31 CFR 103.34 and 26 USC 6109 require that you provide your social security number when opening an account. Additionally, according to instructions published in the Federal Register (37 FR 13270,37 FR 26517,38 FR 3341 and 39 FR 32336), financial institutionsare required to obtain your social security number before opening an account. However, getting away with such claims tends to also mean that financial institutions rely heavily upon the naivetk and gullibility of customers and bankers' ability to intimidate customers with legal citations. When challenged more specifically the bankers often turn to their 3-volume legal reference published by the Federal Deposit Insurance Corporation called FDIC Law, Regulations and Related Acts where we read: 8000 - Miscellaneous Statutes and Regulations Departmentof the Treasury Instructions Relating to Taxpayer ldentification Numbers Financial Recordkeepingand Reporting of Currency and ForeignTransactions lnstructions Relating to Taxpayer ldentification Numbers On June 30, 1972, instructions were issued on this subject and published in the Federal Register (37 FR 13279 (1972)). These procedures have been revised in accordance with amendments to the regulations issued on December 8, 1972, and published in the Federal Register (37 FR 26.517 (1972)). With respect to each deposit or share account opened after June 30,1972, by a person residing or doing business in the United States or a citizen of the United States, each bank, savings and loan association, building and loan association, credit union, or broker or dealer in securities must, within 45 days from the date the account is opened, secure and maintain a record of the taxpayer identification number of the person maintaining the account. For individuals, the taxpayer identification number is his social security number. For corporations, partnerships, and other entities it is the IRS employer identification number. If an account is opened in more than one individual's name, the financial institution is required to secure and maintain the social security number of at least one individual having a financial interest in that account. In determining the proper identification number to be obtained for accounts opened in more than one name, the financial institutionshould follow the regulations and rulings issued by the Internal Revenue Service under section 6109 of the Internal Revenue Code. The following guidelines have been issued by IRS under that section: