Following more than two years of consistent advocacy, AFC hails regulatory milestone supporting responsible innovation and financial access

Washington, D.C. (June 30, 2025) – The American Fintech Council (AFC), the premier industry association representing responsible fintech companies and innovative banks, celebrated a major victory following the Federal Deposit Insurance Corporation’s (FDIC) notational vote approving a general exemption to the Customer Identification Program (CIP) rule. The order was approved unanimously by the FDIC Board (3-0) and signed in concurrence by FinCEN Director Andrea Gacki, making clear that FinCEN supports the exemption’s underlying rationale. The exemption allows regulated banks greater flexibility in how they verify customer identities when opening new accounts, including the ability to onboard consumers without collecting full Social Security Numbers (SSNs) or Tax Identification Numbers (TINs) directly from consumers instead allowing other verification methods.

The decision reflects the arguments AFC has long advanced, including formal recommendations to the FDIC and FinCEN dating back to April of 2023. AFC has consistently urged regulators to modernize outdated compliance frameworks and support identity verification methods that expand access without compromising security.

“We have long championed regulatory modernization, including updating the CIP rule, to create parity for similarly situated financial services and bring requirements in line with responsible innovative practices,” said Phil Goldfeder, CEO of the American Fintech Council. “This approach ensures that compliance with the CIP rule more closely aligns with Congressional intent. We applaud Acting Chairman Travis Hill and the other members of the FDIC Board for their leadership and pragmatic approach to updating this framework, as well as FinCEN Director Gacki for her thoughtful concurrence.”

The decision reflects a growing recognition among regulators that rigid interpretations of statute, such as requiring full SSNs at onboarding, can restrict access to the financial system without improving security. The exemption recognizes a more flexible, risk-based path allowing institutions and their fintech partners to leverage modern identity verification tools while maintaining strong consumer protections.

“The FDIC’s approval of the CIP Rule Exemption Order marks a meaningful step forward in modernizing outdated Bank Secrecy Act compliance requirements and expanding access to the financial system – a step AFC has consistently championed for years,” said Ian P. Moloney, SVP and Head of Policy and Regulatory Affairs at AFC. “With today’s vote and FinCEN’s concurrence, we believe that innovative banks and their fintech partners from across the market can operate effectively and efficiently.”

A standards-based organization, AFC is the premier trade association representing the largest financial technology (Fintech) companies and innovative banks offering embedded finance solutions. AFC’s mission is to promote a transparent, inclusive, and customer-centric financial system by supporting responsible innovation in financial services and encouraging sound public policy. AFC members foster competition in consumer finance and pioneer products to better serve underserved consumer segments and geographies.

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