Customer Identification Program Regulations

D

The Customer Identification Program (CIP) is a set of regulations issued by the Financial Crimes Enforcement Network (FinCEN) that requires financial institutions to verify the identity of their customers. The purpose of the CIP is to prevent money laundering, terrorist financing, and other financial crimes.

The accurate statement according to the requirements of the customer identification program regulations is D: The bank's CIP program must enable it to form a reasonable belief about the identity of the person.

This means that the bank must have procedures in place to verify the identity of its customers, including obtaining identifying information such as name, date of birth, address, and identification number. The bank must also verify this information using reliable sources, such as government-issued documents or databases. Based on this verification process, the bank must form a reasonable belief that it knows the true identity of its customer.

Answer A is incorrect because while documentary verification may be required in some cases, it is not always necessary, and other forms of verification may be acceptable. Answer B is also incorrect because the bank cannot waive any part of the CIP requirements unless it falls under a specific exception, and senior management approval is not sufficient. Answer C is incorrect because a post office box is not always sufficient to verify a customer's identity, and the bank must obtain a physical address or other identifying information.

In summary, the accurate statement according to the requirements of the customer identification program regulations is that the bank's CIP program must enable it to form a reasonable belief about the identity of the person.