Your Customer Identification Program (CIP) is about knowing your customer. It’s designed to help you form a reasonable belief that you know the identity of a person or entity looking to open an account. You are required to collect certain information and then verify it, all in an attempt to ensure they really are who they say they are. CIP has been around for over 20 years and it’s not uncommon for us to see employees who are confused about the CIP compliance requirements. It’s important to understand that CIP is still very much an important part of your BSA/AML program even as new BSA/AML requirements have come along.
Kevin explains more in the video.
Video Highlights:
- CIP is designed to help form a reasonable belief about the true identity of a customer.
- Specific pieces of information must be obtained and verified.
- Front-line employees are often confused about the difference between CIP and other Customer Due Diligence requirements.
Published
2023/12/18
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).
