What does CIP stand for?

• A. Compliance Inspection Process
• B. Client Information Protocol
• C. Cash Investment Procedure
• D. Customer Identification Program

Answer: (D)

In anti-money-laundering practice, the key requirement is to verify who a customer is before opening an account or establishing a relationship. This is known as the Customer Identification Program. It stems from the Bank Secrecy Act and is designed to prevent criminals from using the financial system for illicit activity. A CIP requires collecting identifying information—such as name, date of birth, address, and a government-issued identifier (like a Social Security number or passport number)—and verifying that information through documents or approved non-documentary methods. In the insurance/financial context, implementing a CIP when onboarding new customers helps ensure you’re dealing with legitimate individuals and creates an auditable trail for due diligence.

The other phrases don’t reflect this identity-verification framework; they’re not the established term for the onboarding process that preserves the integrity of customer identities and AML controls.