Under CIP, after the customer's identity has been verified, what must the institution determine?

• A. Check the customer’s credit history
• B. Review the customer’s employment status
• C. Assess the customer’s residential address
• D. Determine whether the customer appears on any list of known suspected terrorists or terrorist organizations

Answer: (D)

Screening against terrorist and sanctions lists is what CIP requires once identity has been verified. After confirming who the customer is, institutions must check whether the person or entity appears on government or international lists of known or suspected terrorists or terrorist organizations. This helps prevent sanctions violations and reduces the risk that the customer funds or facilitates illicit activity. If there is a match, follow your institution’s escalation procedures—enhanced due diligence, possible denial of services or account closure, and reporting as required by law. This step focuses on sanctions and security concerns, rather than credit history, employment status, or residential address, which are not the primary post-verification CIP actions.