§1829c Making Online Banking Initiation Legal and Easy

Summary

Banks and credit unions may scan or get a copy or image of a driver’s license or a personal ID when someone starts opening an account or asking for a financial product online. They can keep the scanned personal information in electronic form only to check the ID is real, confirm who the person is, or meet a legal recording or transmission requirement. If a different use is required by the Federal bank secrecy laws (see below), they may follow those rules. After they finish those checks, they must permanently delete any image or copy of the license or ID. This does not change other state or federal laws about keeping and sharing nonpublic personal information. If a state law conflicts with these rules, the federal rules control only where they conflict. Defined terms (short): Affiliate — meaning in section 1841. Driver’s license — a State-issued license to drive. Federal bank secrecy laws — section 1829b, section 1953, and subchapter II of chapter 53 of title 31. Financial institution — an insured depository institution, an insured credit union, or their affiliates. Financial product or service — meaning in section 5481. Insured credit union — meaning in section 1752. Insured depository institution — meaning in section 1813. Online service — an Internet-based service like a website or app. Personal identification card — a State or local ID used only for identification. Personal information — the info on or encoded on the ID needed for the allowed uses. Scan — using a device or software to read that information electronically. State — includes states, DC, Puerto Rico, and U.S. territories.