According to the USA Patriot Act (federal law), all financial institutions must obtain, verify and record information that identifies each person who opens an account. Thus, know the identity of individuals wishing to conduct financial transactions.
The Act requires financial institutions to develop a Customer Identification Program appropriate to the size and type of its business. The CIP must be incorporated into the bank's Bank Secrecy/ Anti-money laundering compliance program, which is subject to approval by the financial institution's board of directors.
Requirements of the CIP Program:
 Collect minimum information
• Name
• Address
• Date of Birth-if individual
• Identification Number
 Verify customer information timely
 Maintain appropriate records
 Records Retention (5 years after account closed)
 Consult government terrorist lists
 Customer Notice
 Account opening method (Internet)