Customer Screening and Documentation: Rapid Fire
Chapters in this video
- 0:00 The bouncer and the host: CIP versus KYC
- 2:05 The five-year trap: CIP retention starts at account close
- 3:26 Who else can trade: Powers of Attorney and the death rule
- 4:42 The three A's of discretion: why verbal always fails
- 5:17 Secrets and suspicion: Regulation S-P privacy rules
- 6:08 Numbers you must memorize: thresholds and timelines
- 7:53 Rapid-fire exam recap: entities, gotchas, and tipping off
What this video covers
- The four mandatory data points under the Customer Identification Program (CIP) and the specific trap of P.O. boxes versus APO/FPO addresses
- Why CIP is a one-time bouncer at account opening while Know Your Customer (KYC) is an ongoing host that never stops, even with zero recommendations
- How full, limited, durable, and non-durable Powers of Attorney differ, and why every single one dies instantly when the principal dies
- What the three A's of discretion (Action, Asset, Amount) mean, why verbal authorization is always unauthorized trading, and when time-and-price discretion expires
- When Regulation S-P requires an opt-out opportunity, which exceptions bypass it entirely, and the 30-day breach-notification clock
- The dollar thresholds that matter: 30% default withholding for non-resident aliens, $5,000 for Suspicious Activity Reports (SARs), just-under-$10,000 structuring, and 25% beneficial ownership
- CIP records retained five years from account close versus SAR records retained five years from filing, and why confusing the start dates costs points
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