USA PATRIOT Act Customer Identification Program (CIP) Mandates
Under the USA PATRIOT Act Customer Identification Program (CIP), what 4 pieces of identifying information MUST a broker-dealer obtain from an individual customer BEFORE opening an account?
CIP requires obtaining 4 mandatory items prior to opening an account: (1) Full Legal Name; (2) Date of Birth; (3) Physical Residential/Business Address (a P.O. Box is NOT acceptable without a residential/military address); and (4) Taxpayer Identification Number (SSN for U.S. citizens; passport/alien ID for foreign nationals).
Complete Analysis & Legal Rationale
Identity must then be verified within a reasonable time using documentary or non-documentary methods.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Name, DOB, Physical Address, and Tax ID (SSN) are the statutory 4 CIP items.
Credit scores and net worth are suitability items, not the 4 mandatory CIP identity fields.
References and salary are not CIP identity requirements.
Passports and licenses are verification documents, not the 4 core data points.
Official Standard: Mandates collection of Name, DOB, Address, and TIN.