Handshake and CodeSignal records typically stay on your account permanently, but they don't affect your ability to use the account

When you open a bank account, the bank records information about how you opened it — including whether you used Handshake (an identity verification service) or CodeSignal (a background check tool). These records remain in your account file indefinitely. However, this is different from a mark against you. The bank keeps them for its own compliance records, not because they're a problem you need to resolve.

The confusion usually comes from mixing up three separate things: the record that you used these services, the results of those checks, and whether those results affect your account status. Understanding which is which matters because it changes what you actually need to do.

Key Takeaways

  • Handshake and CodeSignal records stay permanently on your account as part of your onboarding history, but this is routine and does not limit your account use.
  • These services verify your identity and check your background — they are not loans, credit inquiries, or marks against you.
  • If either check flagged a problem during onboarding, the bank would have told you then; a record sitting quietly in your file means the check passed.
  • You cannot remove these records, and you should not need to — they are internal bank documentation, not something that appears on your credit report or affects other banks.

What Handshake and CodeSignal actually do

Handshake is a third-party service that verifies you are who you say you are. It checks your government ID, sometimes your address, and sometimes your phone number. The bank uses it to confirm your identity before opening the account. Once that check is done, Handshake's role ends — but the bank keeps a record that the check happened and what it confirmed.

CodeSignal is a background check service. It searches public records for things like criminal history, fraud flags, or other issues that might affect whether a bank wants to open an account with you. Like Handshake, it runs once during onboarding. The bank keeps the result in your file.

Neither of these is a credit check. Neither appears on your credit report. Neither is something other banks can see. They are internal records that your bank uses to document that it followed its own rules when opening your account.

Why the records stay on your account

Banks are required by federal law to keep records of how they opened accounts and what checks they ran. This is part of Know Your Customer (KYC) compliance — a set of rules that prevent banks from opening accounts for people engaged in fraud or money laundering. The bank must be able to show regulators that it verified your identity and ran appropriate background checks.

These records are not stored to punish you or limit you. They are stored so the bank can prove to the government that it did its job correctly. They stay permanently because the bank must keep them for as long as your account exists, and sometimes longer for regulatory reasons.

If the checks had found a problem, the bank would not have opened the account in the first place. A record sitting in your file with no action taken against you means the checks passed.

Whether these records affect your account or other banks

The Handshake and CodeSignal records on your account do not limit what you can do with that account. You can deposit money, withdraw money, set up direct deposit, and use all the account's features normally. These records are not a restriction or a flag — they are just documentation.

Other banks cannot see these records. When you open an account at a different bank, that bank will run its own Handshake check and its own background check. The fact that you have records from these services at your current bank does not affect whether another bank will open an account with you.

These records also do not appear on your credit report and do not affect your credit score. Credit bureaus do not have access to internal bank compliance records.

If you want to know what the checks found

If you want to see what information Handshake or CodeSignal collected about you, you can contact your bank and ask for a copy of your onboarding file. The bank may charge a small fee or may provide it free, depending on its policy. You can also contact Handshake or CodeSignal directly — both companies have processes for letting you see and dispute information they collected about you.

You might want to do this if you are concerned that incorrect information was reported — for example, if CodeSignal flagged a criminal record that does not belong to you, or if Handshake recorded the wrong address. In those cases, you can dispute the information with the service that collected it, and the bank can update its records if the dispute is resolved in your favor.

However, if the checks passed and your account is working normally, there is no reason to request these records. They are not going anywhere, and requesting them will not change anything about your account.

What happens if you close the account

If you close your account, the bank still keeps the Handshake and CodeSignal records. These are regulatory records, not account records, so they remain in the bank's files even after the account is gone. This is normal and required by law.

If you later want to open a new account at the same bank, the bank will run new Handshake and CodeSignal checks — it will not reuse the old ones. The old records will still be in the bank's files, but they will not affect the new checks.

Frequently Asked Questions

Can I ask the bank to remove the Handshake and CodeSignal records?

No. These are regulatory compliance records that the bank is required to keep. You cannot remove them, and the bank cannot remove them on request. They will remain in your file for as long as the account exists and typically for several years after you close it.

Do these records show up when I explore for a loan or credit card?

No. Lenders and credit card companies see your credit report, not your bank's internal compliance files. Handshake and CodeSignal records are not on your credit report and do not affect loan or credit card decisions.

What if CodeSignal found something wrong — will it stop me from opening accounts elsewhere?

If CodeSignal had found a serious problem, your current bank would not have opened the account. If the account was opened and is working normally, the check passed. Other banks will run their own background checks and make their own decisions — they cannot see your current bank's CodeSignal results.

Does having these records mean I'm flagged as high-risk?

No. Every bank account opened in the United States involves Handshake or a similar identity check and a background check. Having these records is completely normal and universal — it does not mean you are flagged or watched.

If I move or change my name, do I need to update these records?

You should update your address and name with your bank, but you do not need to do anything with the Handshake or CodeSignal records specifically. The bank will update its own files, and those records will remain as historical documentation of your onboarding.