why do banks require a person to provide personal identification, such as a valid photo id, in order to open…

why do banks require a person to provide personal identification, such as a valid photo id, in order to open an account? by law, banks are required to know their customers. the bank does not want to give interest to the wrong bank account holder. banks cannot pay interest earned by criminals to the irs. the bank can create “family” accounts for relatives with the same last name.

why do banks require a person to provide personal identification, such as a valid photo id, in order to open an account? by law, banks are required to know their customers. the bank does not want to give interest to the wrong bank account holder. banks cannot pay interest earned by criminals to the irs. the bank can create “family” accounts for relatives with the same last name.

Answer

Brief Explanations:

Banks are legally obligated to know - your - customer (KYC) to prevent fraud, money - laundering etc. This requires identification verification.

Answer:

By law, banks are required to know their customers.