Customer Screening and Documentation: Rapid Fire
Chapters in this video
- 0:00 CIP versus KYC, identity versus ongoing facts
- 1:00 CIP four items and the CIP-versus-suitability trap
- 1:37 PO boxes, temporary addresses, and verification methods
- 2:46 OFAC terrorism list hits: stop, escalate, stay silent
- 3:32 Currency Transaction Report threshold and structuring crime
- 4:42 Suspicious Activity Report threshold and no-tipping-off rule
- 5:36 Limited POA, full POA, and the death of the principal
- 6:36 Full discretion requirements and time-and-price authority
- 7:27 Corporate insiders, short-swing profit rule, and the 10% threshold
- 7:58 Rapid-fire exam recap
What this video covers
- Why the Customer Identification Program (CIP) collects exactly four items (name, date of birth, address, identification number) and why suitability facts like occupation and income belong to Know Your Customer (KYC), not CIP
- The difference between documentary and non-documentary verification, and why a post office box alone is never a valid CIP address for an individual
- The three-step Office of Foreign Assets Control (OFAC) flow: stop the transaction, escalate to compliance, do not tip off the customer
- Why structuring cash to avoid a Currency Transaction Report (CTR) is a federal crime by itself, and the side-by-side thresholds for CTR versus Suspicious Activity Report (SAR)
- The Fight Club rule of SAR secrecy: no tipping off the customer, their attorney, or anyone outside the firm
- Limited versus full power of attorney (POA), and why all POAs (even durable) terminate at the death of the principal
- Full discretionary authority versus time-and-price discretion, including the three required documents for full discretion and the same-business-day expiration of time-and-price authority
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