Under federal Anti-Money Laundering (AML) regulations and FINRA rules, broker-dealers must establish a Customer Identification Program (CIP) to verify the identity of individuals opening accounts. Which of the following customer details are mandatory minimum information elements that a firm must collect from an individual U.S. citizen prior to opening an account?
- Legal name and date of birthAnswer
- Taxpayer Identification Number (such as a Social Security Number)Answer
- CCopies of personal federal income tax returns from the previous two years
- Physical residential or principal business street addressAnswer
Answer
The mandatory minimum CIP information required from an individual U.S. person prior to account opening includes the customer's legal name, date of birth, Taxpayer Identification Number (Social Security Number), and a physical residential or business street address.
Federal CIP rules mandate that broker-dealers collect four specific minimum pieces of information from a U.S. individual before opening an account: legal name, date of birth, physical residential or business street address, and a Taxpayer Identification Number.
Step-by-Step Solution
Key Concept
Mandatory Customer Identification Program (CIP) Information Requirements
Estimated Time:45s