Tellers at Chase branches are starting to inform customers that the bank will require a form of identification for cash deposits starting next month, as the nation’s largest bank tightens anti-money laundering controls.
The new policy requires customers who want to make a cash deposit to show a driver’s license or other identification, and they also must actually be listed on the account.
This requirement likely marks the beginning of the end of anonymous cash deposits. JPMorgan Chase is believed to be the first of the big U.S. banks to require IDs for cash deposits.
Branch representatives are telling customers to expect the new policy starting February 1, but the new rule is not expected to be strictly enforced until March 3, Chase told FOX Business.
“We are making this policy change for cash deposits only to combat misuse of accounts, including money laundering,” a Chase spokesperson told Fox.
Chase is one of several big banks targeted by U.S. regulators and the Justice Department for lax money laundering controls.
Under an agreement with federal prosecutors, JPMorgan Chase has agreed to pay $1.7 billion to the victims of Bernard Madoff’s multibillion-dollar Ponzi scheme.
The bank will be criminally charged with two violations of the Bank Secrecy Act and will admit to the violations.
Enacted 44 years ago, the Bank Secrecy Act requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering.
According to the U.S. Treasury’s anti-money laundering unit, the law requires financial institutions to “keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities.”