Which term corresponds to the program for verifying customer identities?

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Multiple Choice

Which term corresponds to the program for verifying customer identities?

The main idea here is the formal process banks use to verify a customer’s identity at onboarding. The term that matches this is the Customer Identification Program, or CIP. This program is required under BSA/AML rules and governs how banks confirm who a customer is before opening an account or establishing a banking relationship. CIP involves collecting identifying information (like name, date of birth, address, and an identifying number such as a Social Security number or passport) and verifying it through reliable sources, plus maintaining records and conducting ongoing monitoring. The other options refer to things used within the process or unrelated concepts—an Identification Document is a document used to prove identity, a Taxpayer Identification Number is a tax ID, and a Payment Order is a transaction instruction.

The main idea here is the formal process banks use to verify a customer’s identity at onboarding. The term that matches this is the Customer Identification Program, or CIP. This program is required under BSA/AML rules and governs how banks confirm who a customer is before opening an account or establishing a banking relationship. CIP involves collecting identifying information (like name, date of birth, address, and an identifying number such as a Social Security number or passport) and verifying it through reliable sources, plus maintaining records and conducting ongoing monitoring. The other options refer to things used within the process or unrelated concepts—an Identification Document is a document used to prove identity, a Taxpayer Identification Number is a tax ID, and a Payment Order is a transaction instruction.

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