Fed to Provide Banks Flexibility on Collecting Customer ID Info

The Federal Reserve will provide banks flexibility for collecting certain customer information by allowing lenders to obtain a tax identification number from a third party rather than directly from the customer.

The central bank said under a requirement implemented in 2003, lenders are required to verify the identify of a potential customer by obtaining certain information before opening an account. It noted there have been “considerable changes” in the way that customers receive financial services since then.