Customer Identification Program
- Customer Identification Program
-
According to provisions of the USA Patriot Act, all financial institutions must verify the identity of individuals wishing to conduct financial transactions. The law was implemented by regulations in 2003 which require financial institutions to develop a Customer Identification Program (CIP) appropriate to the size and type of its business. The CIP must be incorporated into the bank's Bank Secrecy Act/Anti-money laundering compliance program, which is subject to approval by the financial institution's board of directors.
Requirements
The CIP is intended to enable the bank to form a reasonable belief that it knows the true identity of each customer. The CIP must include new account opening procedures that specify the identifying information that will be obtained from each customer. It must also include reasonable and practical risk-based procedures for verifying the identity of each customer. Financial institutions should conduct a risk assessment of their customer base and product offerings, and in determining the risks, consider:
- The types of accounts offered
- The methods of opening accounts.
- The types of identifying information available
- The institution's size, location, and customer base
References
Wikimedia Foundation.
2010.
Look at other dictionaries:
customer identification program — ( CIP) A proposed requirement under the Bank Secrecy Act that all financial institutions implement a written, risk based customer identification program, maintain information used to verify identities and compare the names of new customers… … Financial and business terms
Address confidentiality program — An address confidentiality program allows victims of domestic violence, sexual assault, stalking or other types of crime to receive mail at a confidential address, while keeping their actual address undisclosed. This is usually done through the… … Wikipedia
Know your customer — (KYC) is the due diligence and bank regulation that financial institutions and other regulated companies must perform to identify their clients and ascertain relevant information pertinent to doing financial business with them. In the USA, KYC is … Wikipedia
National identification number — A national identification number, national identity number, or national insurance number is used by the governments of many countries as a means of tracking their citizens, permanent residents, and temporary residents for the purposes of work,… … Wikipedia
Radio-frequency identification — (RFID) is a technology that uses radio waves to transfer data from an electronic tag, called RFID tag or label, attached to an object, through a reader for the purpose of identifying and tracking the object. Some RFID tags can be read from… … Wikipedia
Loyalty program — – Loyalty programs are structured marketing efforts that reward, and therefore encourage, loyal buying behavior behavior which is potentially beneficial to the firm.[1] Various loyalty cards In marketing generally and in retailing more… … Wikipedia
Organizational identification — Contents 1 Definitions of Identification and Organizational Identification 2 Why is Organizational Identification Important? 3 Differences and Similarities between OI and Affective Organizational Commitment … Wikipedia
Community bicycle program — Community bicycle programs (also known as Yellow bicycle programs, White bicycle programs, bike sharing, public bike or free bike) are one element of an international movement to build environmentally friendly transportation.Community programs… … Wikipedia
BAE Systems Customer Solutions — of Arlington, Virginia [http://hoovers.com/free/search/simple/xmillion/index.xhtml?query string=BAE+Systems+Customer+Solutions which=company page=1 search x=0 search y=0] [http://www.baesystems.com/Businesses/CustomerSolutions/Locations/index.htm]… … Wikipedia
CIP — customer identification program (CIP) A proposed requirement under the Bank Secrecy Act that all financial institutions implement a written, risk based customer identification program, maintain information used to verify identities and compare… … Financial and business terms
