Banks are required to implement Customer Identification Programs (CIPs) to prevent financing of terrorist operations or money laundering, and when opening an HSA, all employees must go through CIP as part of the US Patriot Act.
When an account holder is flagged by the bank as needing more information, the bank contacts the employee directly, via email, with a request for additional information in order to verify their identity.
Some examples of why an employee may not initially pass the CIP process are as follows:
- SSN does not coincide with name and address
- SSN was issued prior to date of birth
- SSN registered as deceased
- Day, year or month of birth does not coincide with SSN
This is not a comprehensive list, but is provided as an example of the possible and most likely scenarios.
If this employee receives an email communication notifying them they have not passed the bank’s CIP process, they will want to make sure to read the communication thoroughly, and provide the requested supporting documentation directly to the bank.