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Can you summarize Assessing Compliance with BSA Regulatory Requirements > Customer Identification Program (2021)?
Assessing Compliance with BSA Regulatory Requirements > Customer Identification Program (2021)
Short Summary
This document outlines the regulatory requirements for banks regarding the Customer Identification Program (CIP). The CIP is a written program that banks must have in place to verify the identity of their customers. The program must be appropriate for the bank’s size and type of business and must include certain minimum requirements. The CIP must include risk-based procedures for verifying the identity of each customer, taking into account factors such as the types of accounts maintained by the bank, the bank’s methods of opening accounts, and the types of identifying information available. The CIP rule applies to customers who open new accounts, but excludes certain individuals and entities. The CIP must also include procedures for recordkeeping and retention of customer information, as well as procedures for checking customers against government lists of known or suspected terrorists. The document also addresses the use of third parties in performing CIP procedures and provides guidance on internal controls and examiner assessment of CIP compliance.
Whom does it apply to?
Banks, including certain domestic subsidiaries
What does it govern?
Customer Identification Program (CIP) requirements for banks
What are exemptions?
Exemptions may be granted by the appropriate federal functional regulator
What are the Penalties?
Penalties for non-compliance are not specified in the document
Jurisdiction
U.S. Federal Government