CIP & OFAC - CD Account Opening

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Question:

Does CIP and OFAC pertain to opening a Certificate of Deposit? The customer already has other accounts in the bank.

Answer:

Yes, they apply to opening a CD. If you have already conducted CIP procedures on this customer; they are exempt when they open this new account. OFAC applies to all transactions, but there is no requirements to check them once, let alone each time they open an account. Your institution should have some OFAC system to check current customers.

First published on BankersOnline.com 7/26/09