Which of the following does NOT fall under the identification and verification rules?

Beneficiaries do not fall under the identification and verification rules as defined by the Bank Secrecy Act (BSA) and the related regulations. The purpose of these rules is to ensure that financial institutions can identify and verify the identities of individuals and entities with whom they have a financial relationship, primarily at the time of account openings and certain transactions.

Joint owners, non-resident aliens, and co-borrowers are all directly involved in the formation of a banking relationship or financial transaction, necessitating identification and verification processes. For example, joint owners have a legal stake in the account, non-resident aliens often require specific documentation due to their residency status, and co-borrowers share responsibility for a loan, meaning their identities also need to be verified.

In contrast, beneficiaries, while they may be associated with accounts or financial products, do not have a direct financial relationship with the institution at the point of account opening. Their identification and verification are not typically required unless they are directly engaging in a transaction or account-related activity. This distinction is crucial within the framework of the BSA, as it focuses on preventing money laundering and ensuring consistent identification standards for active participants in financial transactions.