Which methods can a credit union use for identity verification?

The correct answer, which identifies documentary and non-documentary methods for identity verification, highlights two key approaches that are fundamental in ensuring compliance with regulations like the Bank Secrecy Act.

Documentary methods involve the verification of information through physical documents. This can include government-issued Identification (ID) such as a driver's license or passport, which provide tangible proof of identity. In practice, these documents are typically reviewed to ensure they are valid and belong to the individual presenting them.

Non-documentary methods, on the other hand, may include verification through alternative channels that do not rely on physical documents. This can involve using public records, third-party databases, or even biometric data to confirm an individual's identity. Non-documentary methods are particularly useful in scenarios where physical documents are not available or when a quicker verification process is needed.

The combination of both documentary and non-documentary methods allows a credit union to have a robust identity verification system that can cater to various situations, ensuring compliance with regulatory requirements. This dual approach aids in mitigating risks associated with fraud and identity theft, which is essential for maintaining the integrity of the financial system.

Other options, while they might suggest valid methods, do not encompass the broad concepts of identity verification as comprehensively as the selected answer does.