That’s what the headline says. The Wall Street Journal further reports (subscription only):
Bank of America defends the program, saying it complies with U.S. banking and antiterrorism laws. Company executives say that the initiative isn’t about politics, but rather about meeting the needs of an untapped group of potential customers.
“These people are coming here for quality of life, and they deserve somebody to give them a chance to achieve that quality of life,” says Brian Tuite, the bank’s director of Latin America card operations and one of the architects of the program.
Critics say Bank of America is knowingly making a product available to people who are violating U.S. immigration law. “They are clearly crossing the line; they are actually aiding and abetting people who broke the law,” says Ira Mehlman, a spokesman for the Federation for American Immigration Reform, a group that advocates a crackdown on illegal immigration.
Whoa, I know a thing or two about banking regs and I have no idea how this could possibly comport with the “know your customers” kick the feds have been on since before 9/11. Put it this way, customers with Muslim surnames absolutely could not get away with trying to open demand deposit or credit accounts without proper ID.
From the WSJ account, it sounds like BofA is simply using its own internal judgement on who gets these accounts. If you are Hispanic, have some money, and are willing to pay higher fees, BofA will find a way to do business with you. Somehow I don’t think your average potential Pakistani customer gets the same options.
But here is the real test: How about white and African-American customers just stop giving Social Security numbers to BofA. Evidently the bank does not need them.
Update: The Uptown paper of record has added a little squib.
