Common use of Lack of Verification Clause in Contracts

Lack of Verification. In situations in which the identity of a prospective customer cannot be verified with a reasonable degree of certainty, an account will not be opened. If concerns regarding a customer’s identity exist subsequent to the opening of an account, a Legal Hold should be placed on the account until the customer’s identity can be verified. In the event a customer’s identity cannot be verified within a reasonable time after the account is opened, the account should be closed and the account proceeds distributed to the account owner of record. In addition, the Fund will consider whether a suspicious activity report must be filed. Documentation or verification that is inconsistent with other forms of identification provided by a customer may be indicative of suspicious activities and require monitoring or reporting. A written description of the resolution of each substantive discrepancy discovered when verifying prospective customers’ identities should be maintained.