What is Customer Identification Program (CIP)?

Established by the U.S. Patriot Act of 2001 and implemented in 2003, the Customer Identification Program (CIP) prescribes the minimum standards with which financial institutions must confirm the identity of a new customer in connection with opening an account. Each financial institution's CIP is proportional to its size and type of business, types of accounts offered, methods of opening accounts, and other factors. The objective of this program is to minimize the degree to which the U.S. financial system is used for money laundering and terrorist financing activities.