If a purchaser cannot provide required information at the time of the transaction, what should occur?

In situations where a purchaser cannot provide the required information at the time of the transaction, the appropriate course of action is to decline the transaction. This response aligns with the Bank Secrecy Act (BSA) requirements, which emphasize the importance of customer identification verification as a key component of anti-money laundering measures. Financial institutions must ensure that they have adequate information about their customers to prevent illicit activities.

Proceeding with the transaction without the necessary information may expose the institution to regulatory scrutiny and potential liability, as it could facilitate money laundering or other illegal activities. Delaying the transaction until information is verified could also pose risks, as it does not fully mitigate the issue of the missing information at the time of the transaction. Requesting the information after the fact does not comply with BSA requirements, as verification must occur prior to completing the transaction. Therefore, declining the transaction is the only option that ensures compliance with regulatory standards and protects both the institution and its customers.