Customer Identification Procedures
Banks are required to clearly spell out the Customer Identification Procedure to be carried out at different stages i.e. while establishing a banking relationship; carrying out a financial transaction or when the bank has a doubt about the authenticity/veracity of the adequacy of the previously obtained customer identification data.
Financial institutions need to conduct a risk assessment of their customer base and product offerings, and in determining the risks, consider:
- The types of accounts offered
- The methods of opening accounts.
- The types of identifying information available
- The institution’s size, location, and customer base
Example of Software used for CIP: