The 2001 USA Patriot Act (P. L. 107-56) requires banks to verify, through a CIP, the identity of people wishing to open accounts with them. The CIP requirement was implemented by federal regulations in 2003. Under the regulations, banks must develop and implement a written CIP appropriate for its size and type of business that, at a minimum, includes procedures for:
- performing risk-based identity verification using specified customer information,
- keeping records and notifying customers, and
- conducting comparisons with certain terrorist lists kept by the federal government.
To learn more about CIPs, click here to read the full report.