Customer Screening and Documentation: Rapid Fire
Chapters in this video
- 0:00 CIP versus KYC: one-time identity, ongoing facts
- 1:13 The four CIP items and the net worth trap
- 2:32 OFAC hits and the five-year record rule
- 2:58 SAR at $5,000 plus suspicion versus CTR at over $10,000 cash
- 4:08 Structuring as a standalone federal crime
- 4:13 Corporate insiders, the 10% threshold, and short-swing profits
- 4:58 Regulation S-P opt-out limits and the dual 30-day rule
- 5:37 Limited POA, full POA, and the death-of-principal rule
- 6:27 Time-and-price discretion versus full discretion trio
- 7:28 Lightning round: four numbers that lock it down
- 8:04 Final boss: security, action, quantity discretion test
What this video covers
- The four exact Customer Identification Program (CIP) items and why wealth, occupation, and income are classic exam traps that belong to suitability, not identity
- Why a post office (P.O.) box alone fails CIP address requirements and how documentary versus non-documentary verification both satisfy the rule
- The stop-escalate-silence protocol for Office of Foreign Assets Control (OFAC) hits and why the registered representative never resolves the match or tips the customer
- The $5,000-plus-suspicion threshold for a Suspicious Activity Report (SAR) versus the over-$10,000 cash trigger for a Currency Transaction Report (CTR), and why structuring is a standalone federal crime
- The 10% corporate insider threshold, the six-month short-swing profit rule, and why profits in that window must be disgorged
- Regulation S-P opt-out limits: nonaffiliated third parties yes, internal affiliate sharing no, plus the 30-day breach notification deadline
- Limited versus full power of attorney (POA), why both die with the principal, and the three-part test for true discretionary authority versus time-and-price discretion that expires at day's end
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