know-your-customer

To implement a CIP workflow for customer onboarding, you must establish identity verification procedures under FINRA Rule 2090 and USA PATRIOT Act Section 326. This includes collecting identifying information and verifying customer identities during the account opening process.

The FinCEN CDD Rule requires financial institutions to identify and verify beneficial owners during customer onboarding. It mandates collecting ownership percentages and control person details to ensure compliant customer due diligence and profile maintenance.

Enhanced due diligence for high-risk customers is required when risk assessment identifies elevated concerns. You must apply stricter identity verification and ongoing monitoring processes to meet FINRA and SEC compliance requirements for these profiles.

To establish ongoing monitoring triggers for customer profile maintenance, define events that require information updates under FinCEN and SEC rules. This ensures continuous compliance by detecting changes in beneficial ownership or risk status.

Yes, this customer due diligence guidance applies to investment advisers by covering SEC requirements for identity verification and ongoing monitoring. It ensures compliant onboarding processes align with federal CIP and CDD obligations.

CDD requirements for updating customer information under federal rules mandate periodic reviews and event-driven updates. You must maintain accurate beneficial ownership and risk profiles to ensure ongoing compliance with FinCEN and FINRA regulations.