What is the program called that verifies the identity of the typical customer when an account is opened?

What is the program called that verifies the identity of the typical customer when an account is opened?

• A. KYC
• B. AML
• C. CIP
• D. CTR

Answer: (C)

The program used to verify a typical customer's identity when opening an account is the Customer Identification Program. This regulatory requirement, part of the framework under the USA PATRIOT Act, mandates collecting and verifying identifying information before an account is opened—things like name, date of birth, address, and an identification number—and keeping records of that verification. Know Your Customer is a broader ongoing practice of understanding and assessing customer risk over the relationship, not the specific onboarding procedure. AML refers to the overall anti-money-laundering framework, while a Currency Transaction Report relates to reporting large cash transactions, not identity verification.

The program used to verify a typical customer's identity when opening an account is the Customer Identification Program. This regulatory requirement, part of the framework under the USA PATRIOT Act, mandates collecting and verifying identifying information before an account is opened—things like name, date of birth, address, and an identification number—and keeping records of that verification.

Know Your Customer is a broader ongoing practice of understanding and assessing customer risk over the relationship, not the specific onboarding procedure. AML refers to the overall anti-money-laundering framework, while a Currency Transaction Report relates to reporting large cash transactions, not identity verification.