What is a CIP document?
A Customer Identification Program (CIP) is a United States requirement, where financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them and is a provision of the USA Patriot Act.
What is the customer identification procedure?
Customer Identification Procedure ( CIP ) Customer identification means identifying the customer and verifying his/ her identity by using reliable, independent source documents, data or information.
What are elements of a customer identification program?
A compliant CIP has three major components to due diligence: planning and implementation, oversight and accountability, and independent auditing. Each of these may be more or less complex depending on the financial institution’s business lines, size, structure, and risk profile.
What is a SAR filing?
A Suspicious Activity Report (SAR) is a document that financial institutions, and those associated with their business, must file with the Financial Crimes Enforcement Network (FinCEN) whenever there is a suspected case of money laundering or fraud.
What is the first step in a customer identification program?
The first step in the CIP process is to gather the required customer identification information. This information must be obtained prior to opening an account or otherwise establishing a relationship.
What is CDD checklist?
The CDD measures to be taken are as follows: (a) Identifying the customer and verifying that customer’s identity using reliable, independent source documents, data or information. (c) Understanding and obtaining information on the purpose and intended nature of the business relationship.
Who must file a SAR?
Banks
Dollar Amount Thresholds – Banks are required to file a SAR in the following circumstances: insider abuse involving any amount; transactions aggregating $5,000 or more where a suspect can be identified; transactions aggregating $25,000 or more regardless of potential suspects; and transactions aggregating $5,000 or …
