Frequently asked questions
What is the difference between CIP and CDD?
A Customer Identification Program (CIP) is part of customer due diligence (CDD) and focuses on the collection of key customer data used to verify identity.
What is CIP in compliance?
What information is required for CIP?
At a minimum, businesses must collect and verify four pieces of identifying information to satisfy CIP requirements: the individual’s name, date of birth, address, and identification number.
What are the elements of a customer identification program?
A CIP must include a written program, collection and verification of identifying information, recordkeeping, comparison with government lists, and customer notice.
What methods of verification are used for CIP?
There are two broad methods for customer identification program (CIP) verification:
- Documentary: This method compares the information from documents such as driver’s licenses or passports against authoritative databases
- Non-documentary: This method verifies PII against global issuing and other authoritative databases to ensure authenticity
What is the difference between CIP and KYC?
Customer identification programs (CIPs) are part of Know Your Customer (KYC) regulations. KYC also usually involves Customer Due Diligence (CDD) and continuous monitoring.