Customer Screening: CIP, KYC, and Entity Documents
Chapters in this video
- 0:00 Collect before you open: the four must-haves
- 1:34 The collect-before-open exception for pending tax IDs
- 2:22 Documentary, non-documentary, and entity verification fallback
- 4:04 The two forgotten screening rules: government lists and customer notice
- 5:00 CIP versus KYC: point-in-time bouncer versus ongoing relationship manager
- 7:01 Five-year retention split and suspicious activity escalation
- 8:16 Rapid-fire exam recap
What this video covers
- The four items a customer identification program (CIP) must collect before an account opens, versus what can be verified within a reasonable time before or after opening
- The one exception that lets an account open without a taxpayer identification number in hand, provided the application was filed first
- Documentary and non-documentary verification methods, plus the fallback step when both fail for a new entity account
- Why a CIP must include procedures for unverifiable identity, and what those procedures should address
- The two often-forgotten required program parts: government list comparison and customer notice timing
- The concrete distinction between CIP as a point-in-time identity check and know your customer (KYC) as an ongoing essential-facts duty
- The five-year record retention split: identifying information kept after account close, verification descriptions kept after record creation
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 82 course also includes adaptive practice questions and spaced-repetition flashcards, available in Free Beta.