After identity verification, which list should be checked by CIP?

• A. Credit bureau lists
• B. Known terrorist or terrorist organization lists
• C. Employee background lists
• D. Vendors lists

Answer: (B)

After confirming a customer’s identity, screening against restricted or high-risk lists is essential to prevent onboarding anyone tied to illicit activity. The best match is known terrorist or terrorist organization lists, because these identify individuals and groups connected to terrorism and related financing, which institutions are specifically obligated to block or scrutinize under AML and sanctions rules. Checking credit bureau, employee background, or vendors lists serves different purposes (credit risk, internal vetting, third-party risk) and does not fulfill the CIP requirement to flag potential terrorism-related or sanctioned connections. In this sense, post-verification screening against terrorist/terrorist organization lists is the critical step to stay compliant and reduce red flags from the outset.