Which of the following is an accurate statement according to the requirements of the customer identification program regulations?
Which of the following is an accurate statement according to the requirements of the customer identification program regulations?
The bank's Customer Identification Program (CIP) must enable it to form a reasonable belief about the identity of the person. This statement accurately reflects the requirement that banks must establish procedures to reasonably verify the identity of their customers, without mandating specific methods such as always requiring documentary verification or accepting certain types of addresses. The emphasis is on achieving a reasonable belief in the customer's identity as per CIP regulations.
This statement accurately reflects the requirement of Customer Identification Program (CIP) regulations, which mandate that banks must establish procedures that enable them to form a reasonable belief about the identity of each customer. It doesn't specify any particular method, such as documentary verification or acceptance of specific addresses, but emphasizes the need for the bank's program to achieve a reasonable belief in the customer's identity.