Under the Customer Identification Program (CIP), which scenario would require additional verification procedures beyond standard documentation?
Correct Answer
B) A borrower's identity cannot be verified through normal documentary methods and non-documentary verification is unsuccessful
Under CIP requirements in 31 CFR 1020.220, when a customer's identity cannot be verified through both documentary and non-documentary methods, additional procedures must be implemented, which may include refusing to open the account or file a SAR if warranted.
Why This Is the Correct Answer
Under CIP requirements in 31 CFR 1020.220, when a customer's identity cannot be verified through both documentary and non-documentary methods, additional procedures must be implemented, which may include refusing to open the account or file a SAR if warranted.
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