Trading, Accounts & Prohibited ActsQuestion 265 of 398
A firm's Customer Identification Program is a required component of which broader compliance framework?
a.The firm's marketing and advertising review
b.The firm's anti-money-laundering (AML) program
c.The firm's dividend reinvestment plan
d.The firm's proxy voting policy
Explanation
CIP is a mandatory part of a firm's AML compliance program under the USA PATRIOT Act. By verifying customer identity at account opening, CIP supports the broader goal of preventing money laundering and terrorist financing.
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