BSA for Lenders: CIP & CDD

A big component of a BSA/AML program is knowing your customers. The more you know about your customers and their typical activity, the more likely you will be able to detect when something seems suspicious or out of the ordinary. This is just as important on the lending side as it is on the deposit side. A couple of ways to help you do this include your Customer Identification Program (CIP) and Customer Due Diligence (CDD) procedures. CIP is the first step, and it helps you identify your customer. Are they who they say they are? CDD helps you understand your customer. What business are they in? What types of transactions are expected? While you might feel like you are being nosy, keep in mind that this information is essential for the prevention of money laundering, terrorist financing and other illicit financial crimes. That and the government requires you to do so.

Kevin explains more in the video.


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Published
2024/03/15

 
Kevin Edwards

Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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