12 U.S.C. § 1829c — Making online banking initiation legal and easy

(a) Definitions. In this section:

(1) “Affiliate” has the meaning given in 12 U.S.C. § 1841. This section does not define it.
(2) “Driver’s license” means a State-issued license allowing a person^* to drive a motor vehicle on public streets, roads, or highways.
(3) “Federal bank^* secrecy laws” means 12 U.S.C. § 1829b, 12 U.S.C. § 1953, and subchapter II of chapter 53 of title 31.
(4) “Financial institution” means an insured depository institution, an insured credit^* union, or an affiliate of either one.
(5) “Financial product or service” has the meaning given in 12 U.S.C. § 5481. This section does not define it.
(6) “Insured credit union” has the meaning given in 12 U.S.C. § 1752. This section does not define it.
(7) “Insured depository institution” has the meaning given in 12 U.S.C. § 1813. This section does not define it.
(8) “Online service” means an Internet-based service, such as a website or mobile application.
(9) “Personal identification card” means an identification document that a State or local government issues to a person only to identify that person.
(10) “Personal information” means information shown on, or electronically encoded on, a driver’s license or personal identification card that is reasonably needed for the purposes allowed by subsection (b).
(11) “Scan” means using a device or software to decode that personal information into an electronically readable format.
(12) “State” means a State of the United States, the District of Columbia, Puerto Rico, or another United States commonwealth, possession, or territory.

(b) Use of a driver’s license or personal identification card.

(1) In general. When a person uses an online service to ask to open an account with a financial institution or obtain a financial product or service from one, the institution may record personal information from a scan of the person’s license or identification card. It may instead copy the document or receive its image. It may store or keep that information electronically for the uses in paragraph (2).

(2) Uses of information. Except when Federal bank secrecy laws require otherwise, the institution may use the information from paragraph (1) only to (A) check that the license or card is genuine; (B) check the person’s identity; and (C) comply with a legal duty to record, keep, or send the information in connection with opening the account or obtaining the product or service.

(3) Deletion of image. If the institution copies or receives an image under paragraphs (1) and (2), then after using it for the paragraph (2) purposes, it must permanently delete (A) the applicable license or card image and (B) every copy of that image.

(4) Disclosure of personal information. This section does not change or otherwise affect any State or Federal law governing an institution’s disclosure or security of personal information that is not publicly available.

(c) Relation to State law. This section overrides a conflicting State law, but only to the extent of the conflict.