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Exam CRCM topic 1 question 238 discussion

Actual exam question from ABA's CRCM
Question #: 238
Topic #: 1
[All CRCM Questions]

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

  • 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
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Suggested Answer: D 🗳️

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Cam22
4 months ago
Selected Answer: D
This statement accurately reflects the requirement of Customer Identification Program (CIP) regulations, which mandate that banks must establish procedures that enable them to form a reasonable belief about the identity of each customer. It doesn't specify any particular method, such as documentary verification or acceptance of specific addresses, but emphasizes the need for the bank's program to achieve a reasonable belief in the customer's identity.
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