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Can you summarize 31 CFR 1020.220?
Programs > Customer identification program requirements for banks.
Short Summary
This document outlines the minimum requirements for banks to implement a Customer Identification Program (CIP) as part of their anti-money laundering compliance program. The CIP must include risk-based procedures for verifying the identity of each customer, based on the bank’s assessment of relevant risks. The bank must obtain certain identifying information from the customer, such as name, date of birth, address, and identification number. The CIP must also include procedures for verifying the customer’s identity using documents or non-documentary methods. The bank is required to maintain records of all information obtained and follow procedures for comparing customers with government lists of known or suspected terrorists. The CIP must provide customers with adequate notice of the bank’s identity verification requirements. Banks may rely on another financial institution’s CIP under certain conditions. The document also allows for exemptions to the requirements, subject to approval by the appropriate regulatory authorities.
Whom does it apply to?
Banks required to have an anti-money laundering compliance program
What does it govern?
Customer identification program requirements for banks
What are exemptions?
Exemptions may be granted by the appropriate Federal functional regulator with the concurrence of the Secretary
What are the Penalties?
Penalties for non-compliance or violation of the requirements are not specified in the document
Jurisdiction
U.S. Federal Government