CIP (Customer Identification Program)
A U.S. regulatory requirement for financial institutions to verify the identity of customers opening accounts.
A Customer Identification Program (CIP) is the formal, documented procedure U.S. financial institutions must maintain to verify the identity of anyone opening an account, under the USA PATRIOT Act.
What it requires
At minimum, collecting name, date of birth, address, and identification number, then verifying that information through documentary or non-documentary methods. CIP is a foundational component of KYC and BSA/AML compliance.
Relationship to fraud loss
CIP is a compliance control, not a loss-coverage mechanism. Even a compliant CIP approves some fraudulent identities; the resulting loss is what fraud loss insurance transfers off your balance sheet.
BSA / AML
The Bank Secrecy Act and Anti-Money-Laundering framework requiring institutions to detect, prevent, and report financial crime.
KYB (Know Your Business)
The process of verifying the identity, ownership, and legitimacy of a business customer during onboarding.
KYC (Know Your Customer)
The regulatory process of verifying the identity of customers during onboarding to prevent fraud and financial crime.