CIP is the acronym for which program in new account conduct?

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Multiple Choice

CIP is the acronym for which program in new account conduct?

CIP stands for the Customer Identification Program, a requirement under the Bank Secrecy Act to verify the identity of every person or business opening a new account. At account opening, institutions collect identifying information—such as name, address, date of birth, and a government-issued ID number—and verify it using documentary or non-documentary methods. They also maintain records and compare information against government lists of known or suspected terrorists. This program helps prevent identity theft, money laundering, and terrorism financing, making it a fundamental part of the new-account process. Other options don’t fit: the concept here is about identifying and verifying customers; Customer Due Diligence focuses on ongoing risk after the account is opened; and an Annual Report is unrelated to new-account conduct.

CIP stands for the Customer Identification Program, a requirement under the Bank Secrecy Act to verify the identity of every person or business opening a new account. At account opening, institutions collect identifying information—such as name, address, date of birth, and a government-issued ID number—and verify it using documentary or non-documentary methods. They also maintain records and compare information against government lists of known or suspected terrorists. This program helps prevent identity theft, money laundering, and terrorism financing, making it a fundamental part of the new-account process. Other options don’t fit: the concept here is about identifying and verifying customers; Customer Due Diligence focuses on ongoing risk after the account is opened; and an Annual Report is unrelated to new-account conduct.

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