What does customer identification program include?
A Customer Identification Program (CIP) is a United States requirement, where financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them and is a provision of the USA Patriot Act.
What are some customer identification program CIP details for individuals?
CIP Customer Information Requirements
- Date of birth (for individuals)
- Address (physical location, not P.O. box)
- Identification Number. For US persons this includes a Tax Identification number (TIN) like a Social Security number.
What is required for CIP?
The CIP Rule requires an identification number. For an individual, the tax identification number is the Social Security number (SSN). For businesses, the tax identification number is the employer identification number (EIN) or taxpayer identification number for the business (TIN).
What attributes would you use to identify a high risk customer?
Classification of High Risk Customers
- Customers linked to higher-risk countries.
- Customers from High Risk Business sectors.
- Customers who have unnecessarily complex or opaque beneficial ownership structures.
- Unusual account activity.
- Lack an obvious economic or lawful purpose.
- Politically Exposed Persons (PEPs)
What is the meaning of customer identification?
Customer identification means identifying the customer and verifying his/ her individuality by using reliable, independent source documents, data or information. To understand the ownership and control structure of the customer and find out who are the natural persons who ultimately control the legal person.
Is a guarantor a customer for CIP?
The rules simply do not address the issue of whether a guarantor is considered to be a customer. The most conservative approach would be to consider the guarantor a customer until such time as the regulators specify otherwise in a Q&A document they’ve promised to produce.
What is CDD checklist?
CDD (Customer Due Diligence) is an essential aspect of an AML compliance program. To manage your risks effectively and protect your business from potential involvement in financial, terroristic and other criminal activities or being associated with them.
What are the requirements for a customer identification program?
Requirements. The Customer Identification Program 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…
What is the abbreviation for Customer Identification Program?
A Customer Identification Program ( CIP) is a United States requirement, where financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them and is a provision of the USA Patriot Act.
What is customer identification policy?
customer identification policy. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account.
What is Customer Identification File?
The Customer Identification File (CIF) is an industry reference file developed for the freight transportation industry. CIF also refers to the CIF web-based application that contains the name, physical and mailing addresses, corporate parent identification and a unique identification code for each location of a transportation carrier customer.