Does CIP apply to businesses?
Publicly traded companies are exempt from CIP. The signers on a business account, public or privately owned, are not your customers, the business is. As such, you’re not required to CIP them. However, many FI’s choose to do so, as it is a sound practice.Click to see full answer. Keeping this in consideration, who does…
Publicly traded companies are exempt from CIP. The signers on a business account, public or privately owned, are not your customers, the business is. As such, you’re not required to CIP them. However, many FI’s choose to do so, as it is a sound practice.Click to see full answer. Keeping this in consideration, who does the CIP rule apply to?The CIP rule applies to a “customer,” generally, “a person that opens a new account.” 31 C.F.R.One may also ask, what are the CIP requirements? Requirements. The Customer Identification Program is intended to enable the bank to form a reasonable belief that it knows the true identity of each customer. The CIP must include new account opening procedures that specify the identifying information that will be obtained from each customer. Also Know, who is exempt from CIP? If the account is being opened in the name of a listed company (as defined in the CTR exemption regulations), the listed company is an exception to the definition of “customer” in the CIP regulation, and would not have to be run through a bank’s CIP process.Is CIP required on authorized signers?Answer: Although authorized signers are not considered customers by the CIP regulations at 31 CFR 103.121, you have to know what your own institution’s board-approved CIP has to say on the subject. As noted earlier, the CIP rules do not require an institution to CIP authorized signers and guarantors.
