The Customer Identification Program (CIP), commonly known as Know Your Customer (KYC) and Know Your Customer’s Customer (KYCC), are guidelines and regulations in financial services that require institutions to verify the identity, suitability, and risks involved with maintaining a business relationship.
Each country has standards and laws to address the following elements:
- Customer acceptance
- Customer identification procedures
- Monitoring of transactions
- Risk Management
In the United States, these elements are covered by the USA Patriot Act 2001 and the CIP 2003. In Canada, these elements are addressed by the Financial Transactions and Report Analysis Centre of Canada (FINTRAC) Regulations.
Stax is required to verify and collect specific information from our Partners and clients to be compliant with these acts and regulations, which in turn helps to mitigate risk for all parties.