Which program is designed for verifying a customer's identity?

• A. CIP
• B. CDD
• C. Identification Document
• D. Taxpayer Identification Number

Answer: (A)

Verifying a customer's identity is governed by a formal program called the Customer Identification Program. This program, required under the Bank Secrecy Act and the Patriot Act, obligates banks to collect identifying information about new customers and to verify that information before or soon after establishing the relationship. Verification uses documentary methods (like government-issued IDs or passports) or non-documentary methods (reliable data sources), and banks must keep records and screen the information against government lists as part of preventing illicit activity. Because it is specifically designed to confirm who the customer is, this program is the correct one for identity verification.

Customer Due Diligence relates to understanding and monitoring a customer's risk and behavior over time, not the initial identity verification program. An Identification Document is a type of document used to prove identity, not a program itself. A Taxpayer Identification Number is a tax ID used for reporting and verification in some contexts, but it is not a formal program for verifying identity.