Certified Regulatory Compliance Manager (CRCM) — Question 224

Which of the following is an accurate statement according to the requirements of the customer identification program regulations?

Answer options

• A. A bank must always require documentary verification of a customer's identification
• B. A bank may waive any part of the CIP requirements if senior management approves the waiver and there is a good cause
• C. A physical address or a post office box is acceptable for any new customer
• D. The bank's CIP program must enable it to form a reasonable belief about the identity of the person

Correct answer: D

Explanation

The correct answer, D, is accurate as the CIP program is designed to ensure that banks can verify customer identities effectively. Options A and C are incorrect because banks do not always require documentary verification and a physical address is not mandatory for all new customers. Option B is misleading; while waivers can occur, they are not common practice and must adhere to strict guidelines.