Series 14: 8.2.1. Customer Identification Verification

8.2.1. Customer Identification Verification

A broker-dealer must establish and maintain a written Customer Identification Program (CIP) as part of the government’s anti-money laundering compliance program.

Money laundering is the concealment of the origins of illegally obtained money, typically by means of transfers involving foreign banks or legitimate business. If the dirty money can be “laundered” by sending it abroad or using it to finance local businesses, commingling it with “clean” money, the authorities will have a hard time linking it to crime. There are three stages of money laundering as traditionally defined:

1.Placement is the state of moving criminal (“dirty”) money into the financial sy