Which of the following is an accurate statement according to the requirements of the customer identification program regulations?
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A. B. C. D.D
The Customer Identification Program (CIP) is a set of regulations imposed by the US government to prevent money laundering, terrorist financing, and other illegal financial activities. The regulations require financial institutions such as banks to establish and maintain procedures to verify the identity of their customers.
In response to the given question, the accurate statement according to the requirements of the customer identification program regulations is option D: The bank's CIP program must enable it to form a reasonable belief about the identity of the person.
Option A is incorrect because while documentary verification is one way to verify a customer's identity, it is not always required. The regulations allow for various methods of identification, such as verifying information through reliable sources, verifying the identity of a customer through non-documentary methods, or using a combination of documentary and non-documentary methods.
Option B is also incorrect because the CIP requirements cannot be waived unless there is an exception permitted by law or regulation. Senior management approval alone is not sufficient, and a "good cause" is not a valid reason to waive the requirements.
Option C is also incorrect because while a physical address or post office box is acceptable, it must be corroborated with other identifying information to form a reasonable belief about the customer's identity.
In summary, option D is the correct answer as the bank's CIP program must enable it to form a reasonable belief about the identity of the person. The regulations do not specify a specific method of identification, but they do require the bank to verify the identity of its customers using reliable sources and methods that are appropriate for the risk of the customer's account.