What is a customer identification program (CIP)?

A customer identification program is a set of procedures that are designed to enable a Member to have a reasonable belief that it knows the true identity of each of its customers.  The CIP must list the identifying information the Member will collect and include procedures covering 1) verifying the identifying information; 2) recordkeeping; 3) comparing customer names and information with certain goverment lists; 4) customer notices; and 5) relying on other Members to conduct all or part of the firm's CIP (if applicable). See the Interpretive Notice 9045 for more information.