A loan and a time deposit are each an “account” for purposes of the CIP rule. How do the requirements of the CIP rule apply to a loan that is renewed, or a certificate of deposit that is rolled over? The CIP rule applies to a “customer,” generally, “a person that opens a new account.” 31 C.F.R. § 103.121(a)(3)(i).

What is considered an account for CIP?

A loan and a time deposit are each an “account” for purposes of the CIP rule. How do the requirements of the CIP rule apply to a loan that is renewed, or a certificate of deposit that is rolled over? The CIP rule applies to a “customer,” generally, “a person that opens a new account.” 31 C.F.R. § 103.121(a)(3)(i).

What entities are exempt from CIP?

Below are entities and individuals that are not considered as customers from an AML regulatory perspective:

  • federally regulated banks.
  • governmental agencies and financial regulators.
  • state-regulated banks and other financial institutions.
  • publicly traded companies.

Who is subject to CIP?

The CIP rule applies to a customer,9 which means: • A person that opens a new account; and • An individual who opens a new account for: o An individual who lacks legal capacity, such as a minor; or o An entity that is not a legal person, such as a civic club.

What is CIP statement?

1 A CIP. prescribes “the minimum standards for financial institutions and their customers regarding. the identity of the customer that shall apply in connection with the opening of an account at. a financial institution.”

What do you need for CIP?

CIP Customer Information Requirements

  • Name.
  • Date of birth (for individuals)
  • Address (physical location, not P.O. box)
  • Identification Number. For US persons this includes a Tax Identification number (TIN) like a Social Security number.

What does CIP mean in banking?

Customer Identification Program
According to the Customer Identification Program (CIP) rules and the Customer Identification Program (CIP) policy, financial institutions including banks must verify the identity of individuals who wish to use their services to conduct financial transactions.

What are the 2 steps to the CIP process?

CIP Process – Verifying Customer Identity (Stage 2)

  1. CIP Process – Verifying Customer Identity (Stage 2)
  2. After gathering CIP information for a new client during the onboarding process, the next phase in the CIP process is to verify the identity of the customer.

When did CIP go into effect?

2003
More commonly known as know your customer, the CIP requirement was implemented by regulations in 2003 which require US financial institutions to develop a CIP proportionate to the size and type of its business.

What is CIP in investment banking?

Once your financials are cleaned up, you and your banker will create a Confidential Information Presentation (CIP). Your CIP will be a ~30-page deck laying out key business metrics and explanations for buyers to evaluate your business at a high level.

What does CIP stand for in investment banking?

According to the Customer Identification Program (CIP) rules and the Customer Identification Program (CIP) policy, financial institutions including banks must verify the identity of individuals who wish to use their services to conduct financial transactions.

What records must be retained according to BSA?

In general, the BSA requires that a bank maintain most records for at least five years. These records can be maintained in many forms including original, microfilm, electronic, copy, or a reproduction.

What is the difference between CIP and KYC?

Know Your Customer (KYC) and Customer Identification Procedures (CIP) are vital for business operations. KYC involves knowing a customer’s identity and the business activities they engage in. CIP, in contrast, involves verifying the information provided by a customer.

Does the CIP apply to trusts?

According to the FFIEC BSA/AML examination manual CIP applies to all customers, including trusts. The CIP is intended to enable a credit union to form a reasonable belief that it knows the true identity of each customer.

What is the CIP rule for account signatories?

However, the CIP rule also provides that, based on the bank’s risk assessment of a new account opened by a customer that is not an individual, the bank may need “to obtain information about” individuals with authority or control over such an account, including signatories, in order to verify the customer’s identity.

What is the CIP and why is it important?

The CIP is intended to enable a credit union to form a reasonable belief that it knows the true identity of each customer. For a trust, credit unions may obtain documents establishing the trust exists.

What are the requirements of a bank’s CIP?

The bank’s CIP must include procedures for making and maintaining a record of all information obtained to identify and verify a customer’s identity.31 At a minimum, the bank must retain all identifying information (name, date of birth for an individual, address, identification number, and