Which term describes confirming the purchaser's identity using credit union records?

Study for the Certified Bank Secrecy Act Professional Test. Use flashcards and multiple-choice questions with hints and explanations. Get exam ready!

Verifying who is purchasing a monetary instrument using the credit union’s records is an identity-checking step built into AML/CIP controls. This activity is described as purchaser verification: it ensures the person buying the instrument is who they claim to be by cross-checking against the institution’s records. This focus on confirming identity before completing the transaction is the core idea here.

The term that describes this is purchaser verification because it directly refers to confirming the purchaser’s identity. A monetary instrument refers to the instrument itself, not the verification process. Reasonable Basis is about having a justifiable reason to suspect illicit activity, used for actions like filing a SAR, not identity verification. Illicit Proceeds describes funds from crime, not the act of verifying who is purchasing.