A Customer Identification Program (CIP) is a core regulatory requirement for financial institutions. It requires these institutions to properly verify the identity of individuals and entities before establishing financial relationships with them. CIP is a foundational element of Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, and helps financial institutions prevent identity fraud, reduce their exposure to illicit activity, and safeguard the entire financial system.
Use case/ examples for Customer Identification Program (CIP)
Documentary verification: Reviewing and authenticating government-issued and/or official documents, including driver's licenses or other forms of ID, business licenses, or utility bills that establish the customer's address.
Non-documentary verification: Validating personal information such as social security number (SSN), address, and date of birth against trusted data sources.
