Customer Identification Program – Checklist and Requirements

Section 326 of the USA Patriot Act requires financial institutions to develop detailed Customer Identification Programs as part of each firm’s AML and Bank Secrecy Act (BSA) compliance programs.

When completing CIP tasks, AML Compliance Officers sometimes use a Customer Identification Program checklist to ensure completion of all required tasks. 

See Also:

Checklist and Requirements for Customer Identification Program

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Sample Customer Identification Program Checklist

Below is a high-level CIP checklist for ensuring CIP completion.

The staff member performing these tasks may vary across firms.

CIP Checklist for New Customers

StaffActivity/TasksDone? Y/N
Front Office / Sales TeamNotify AML staff of a new client in the pipeline 
AML StaffReview preliminary information provided by FO/Sales regarding the new client (i.e., client type, product/service client is looking to receive from the firm, client location, etc.) 
AML StaffCreate the customer profile to track the customer during the onboarding process (use a Case Management AML Tool or use Excel) 
AML StaffDetermine which AMK KYC documentation is needed 
AML StaffNotify FO/Sales of AML KYC information and documentation needed from the new client or reach out directly to the new client 
FO/Sales Contact new client to request required documentation and information 
ClientProvide required documentation and information 
FO/SalesReceive required documentation and information 
FO/SalesSend required documentation and information to AML staff 
AML StaffReceive required documentation and information 
AML StaffInitiate document tracking 
AML StaffKick off AML BSA assessment 
AML StaffValidate customer identity using documentary or non-documentary KYC verification methods 
AML StaffConclude CIP customer identity screening 
AML StaffConduct sanctions / OFAC screening 
AML StaffIdentify sanctions screening matches as true or false or no match 
AML StaffInvestigate any positive matches to validate positive match 
AML StaffPrepare escalation documents (as needed) – for positive matches 
AML StaffEscalate true matches to Chief AML Officer, AML Head, or equivalent 
Chief AML OfficerReview escalation document and perform additional screening (i.e., EDD) as needed 
Chief AML OfficerApprove or reject high risk customer 
AML StaffIf no sanctions screening match, continue with the below set of activities 
AML StaffPerform customer due diligence 
AML StaffPerform customer risk rating 
AML StaffRecord risk rating results 
AML StaffEscalate high risk clients to Chief AML Officer 
AML StaffOpen account for low or medium-risk clients 

This review checklist has been developed to help Compliance Officers, AML Specialists, and other regulatory compliance professionals in developing well-defined and well-documented Anti-Money Laundering (AML) programs.

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