CBY Systems, Inc. - USA Patriot Act

The USA PATRIOT ACT of 2001 (Uniting and Strengthening America by Providing Appropriate Tool Required to Intercept and Obstruct Terrorism) of 2001 was signed into law by President Bush in response to terrorist attacks of September 11.

The Act is intended, in part, to prevent money laundering and the financing of terrorist organizations. One aspect of the law is the requirement that financial institutions compare the names of potential clients to a government-created database (OFAC list) of known or suspected terrorists or drug traffickers.

While you should consult your legal counsel to fully understand the impact of the USA PATRIOT Act upon your business, every tri-merge mortgage credit report you buy from CBY includes a comparison of the applicant's name to the OFAC database - at no additional cost to you.

If you would like additional information on this service, please contact us.

October 22, 2002

To our valued business partner:

As your business intelligence partner, we want to keep you informed of important legislation that could affect your business. Additionally, we want to let you know about the solutions CBY Systems and TransUnion can provide to help you comply with federal, state and local regulations.

On October 25, 2002, the proposed rules for complying with the USA PATRIOT Act go into effect. A substantial portion of the Act is dedicated to preventing money laundering and the financing of terrorist organizations. It is also designed to help reduce identity theft.

By combining leading business intelligence capabilities with one of the country’s largest databases of consumer credit information, we are uniquely qualified to provide the products and services you need to follow the Act*. The following are some of the TransUnion solutions that will help you stay in compliance:

TOTAL ID^SM performs verification and analysis of application information against high-quality multi-source databases. It returns mismatched data, gives a point summary of the match results and points out inconsistencies in application data, which may indicate fraud.

TRANS-ALERT® compares application data to information found in our credit-reporting database and flags any discrepancies, including names, addresses, Social Security numbers and ZIP codes. It also identifies a significant number of recent inquiries, which may indicate fraud.

IDSearchplus^SM quickly verifies application information by checking for contradictory application information against our extensive credit-reporting database.

HAWK®/YOI warn you when customer information appears questionable. They identify potentially fraudulent addresses, Social Security numbers and telephone numbers.

Fraud Detect helps determine if someone is applying for credit using false or stolen information by looking for inconsistencies in the personal information supplied.

OFAC Advisor automatically checks a customer's information against an enhanced OFAC (Office of Foreign Assets Control) list every time an inquiry is processed.

These solutions all address specific requirements detailed in the Act. The following are some highlights of the Act:

The U.S. Treasury and seven federal financial regulators recently proposed new rules requiring financial institutions to adopt new customer verification procedures and implement a Customer Identification Program (CIP).

Minimum requirements of the rules include:

	Verifying the identity of any person or entity opening an account, including name, address, birth date and ID numbers (such as a SSN).
	Maintaining records of the information used to verify identity.
	Consulting a government-provided list (the U.S. Treasury OFAC list) of known or suspected terrorists or terrorist organizations to determine that the person opening the account does not appear on the list.

The rules state use of verification sources such as consumer reporting agencies and comparison of the ID information with fraud databases are examples of non-documentary verification processes that institutions might employ.

The rules also suggest determining whether there is a logical consistency between all of the identifying information.

We are pleased to provide you with the solutions you need to stay in compliance with this new law. We will contact you to arrange a meeting, where we can discuss how TransUnion products and services can help you maximize your compliance efforts. If you'd like more immediate assistance, please call our Marketing Executive at 717-843-8685 or 1-800-717-4229.

Sincerely,

Steven H. Gohn,
President,
CBY Systems, Inc.
Credit Bureau of York

* This letter is not intended as legal advice. You should consult your legal counsel to fully understand the impact, if any, of the USA PATRIOT Act on your business.