CIP refers to regulatory requirements that require financial institutions to verify the identities of their customers. CIP is part of a larger set of regulatory requirements aimed at preventing the U.S. financial system from being used to perpetrate fraud, launder money, finance terrorism and other nefarious activities. Since May 2018, changes to CIP require identity verification of beneficial business owners and require CIP programs to cover events that trigger reverification.
Through working with our team, we can help you decrease the need for manual intervention, access verification data in real time, define a “match” for identity elements, execute step-up authentication when necessary, and consolidate the costs related to CIP and fraud risk scoring.
KYC goes beyond basic identity verification and includes the assessment of fraud risk in new and existing customer accounts. Financial institutions are required to incorporate risk-based procedures and provide detail about products, portfolios, acquisition channels, etc. Institutions should have processes to monitor customer transactions and detect potential financial crimes or fraud risk. KYC policies help determine when suspicious activity reports (SAR) need to be filed with the Department of Treasury's FinCEN organization. The following organizations have KYC oversight: Federal Financial Institutions Examinations Council (FFIEC), Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB).
Combine customer identification and customer due diligence to verify with a “reasonable” belief that the identity is valid and assess associated risks of doing business.
Reduce compliance risk and customer friction with step-up authentication and use of diverse and reliable data.
Implement ongoing monitoring and make fast and easily interpreted authentication decisions.
Discover how to link people, places and things across the lifecycle via identity relationship management.
Explore why barriers to growth, high customer friction and high costs dominate the CIP landscape.
According to the FFIEC, a KYC program should include: