When can the non-documentary method of customer information verification be used?
Verification of customer identity through the use of non-documentary evidence is mandatory in the following situations: (1) when the customer is unable to present an unexpired identification card with a photograph; (2) when the documents the customer presents for identification verification are unfamiliar to the Fund(s …
What is the documentary method of verifying consumer information?
1. Documentary Method: This involves comparing information provided by the customer against official government-issued, state-issued or reputable agency-issued (e.g., DMV) documentation, registration or licenses.
What are the four components of CIP?
It would address the key elements of the CIP, such as the customer information required, the information verification procedure including comparison to government watchlists, records and retention, compliance with other applicable laws, and evidence of action related to non-verified information.
What is the CIP rule?
The CIP rule requires that a bank retain the identifying information obtained about the customer at the time of account opening for five years after the date the account is closed or, in the case of 7 Page 8 credit card accounts, five years after the account is closed or becomes dormant. 31 C.F.R.
What is CIP in BSA?
CUSTOMER IDENTIFICATION PROGRAM EXAMINATION AND TESTING PROCEDURES. Objective: Assess the bank’s compliance with the BSA regulatory requirements for the Customer Identification Program (CIP). Verify that the bank has a written CIP appropriate for its size and type of business.
What is documentary method?
Documentary-methods are the techniques used to categorise, investigate, interpret and identify the limitations of physical sources, most commonly written documents, whether in the private or public domain (personal papers, commercial records, or state archives, communications or legislation).
What is a CIP checklist?
A customer identification program checklist is an essential tool that identity management experts, compliance officers, AML specialists, and other professionals can use to complete various CIP tasks in order to create and manage a Customer Identification Program (CIP).
What is the difference between CIP and KYC?
CIP is the legal requirement for financial institutions to verify information provided by a consumer as outlined in the USA Patriot Act, whereas KYC refers to the specific processes a financial institution utilizes to verify a consumer’s identity before engaging in transactions.
Are banks exempt from CIP?
44 The federal banking agencies, with FinCEN’s concurrence, have granted a CIP exemption for loans extended by banks and their subsidiaries to all customers to facilitate purchases of property and casualty insurance policies (referred to as premium finance loans).
What are the two types of privacy notices under the GLBA privacy Rule?
The GLBA’s privacy provisions mandate privacy notices and place limitations on the sharing of nonpublic personal information (NPI), defined as “personally identifiable financial information (i) provided by a consumer to a financial institution, (ii) resulting from a transaction or any service performed for the consumer …