The Customer Identification Program (CIP) and Customer Due Diligence (CDD) Rules

Learn about the legal requirements, implementation challenges, and supervisory expectations for the Customer Identification Program (CIP) and Customer Due Diligence (CDD) Rules

On-Demand Webinar Available Until October 9, 2020

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The Customer Identification Program (CIP) Rule and the Customer Due Diligence (CDD) rules are two of the most significant regulations in the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) area.  The CIP rule, promulgated in 2003, requires institutions to verify the identity of their customers, while the CDD rule, which became applicable in 2018, requires institutions to identify and verify the identities of beneficial owners of legal entity customers.  The CDD rule also requires institutions to establish procedures to understand the nature and purpose of customer accounts for the purpose of forming a customer risk profile, and monitor accounts for suspicious activity and changes in customer information, including beneficial ownership information – the “Fifth Pillar” of a credit union’s anti-money laundering compliance program.  In addition to these legal requirements, regulators expect financial institutions to conduct “enhanced due diligence” on their higher-risk customers as part of their overall internal controls in the BSA/AML area.

In this session, we will discuss the requirements in the rules, the issues they present, and the practical challenges they pose to credit unions.  We will also provide practical advice on how to navigate the issues and discuss supervisory expectations.  This webinar will provide you with a baseline understanding of the legal requirements as well as practical advice on working with examiners and meeting your compliance obligations. 
 

Key Takeaways:

  • Discuss CIP and CDD rule requirements
  • Understand that there are many gray areas that present implementation challenges
  • Determine how to work with examiners
  • Learn more about the supervisory expectations and how to meet them
  • Review the importance of understanding your legal entity member’s structure and the relationship to its business
  • Discuss the consequences of getting it wrong and how to implement an operationalized and sustainable process

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$295 Members | $395 Nonmembers
(Additional $50 for CD)

One registration gives your entire team access to the live webinar and on-demand recording until October 9, 2020
Already registered? Go to the Online Training Center to view.

Who Should Attend?

  • NAFCU Certified Compliance Officers (NCCOs)
  • NAFCU Certified Risk Managers (NCRMs)
  • NAFCU Certified Bank Secrecy Officers (NCBSOs)
  • BSA and AML staff
  • Compliance staff
  • Risk staff
  • Audit staff
  • Fraud staff

Education Credits

  • NCCOs will receive 1.5 CEUs for participating in this webinar.
  • NCRMs will receive 1.5 CEUs for participating in this webinar.
  • NCBSOs will receive 1.5 CEUs for participating in this webinar
  • CPA credit information is below; recommended 1.5 CPE credits.

CPA Certification Credit Information

Reviewer: Josie Collins, Associate Director of Education, NAFCU

Learning Objectives:  Discuss CIP and CDD rule requirements.  Understand that there are many gray areas that present implementation challenges.  Determine how to work with examiners.  Learn more about the supervisory expectations and how to meet them.  Review the importance of understanding your legal entity member’s structure and the relationship to its business.  Discuss the consequences of getting it wrong and how to implement an operationalized and sustainable process. 

Program Level: Basic

Prerequisites Needed: None

Advance Preparation Needed: None

Delivery Method: Group Internet-Based

Recommended CPE Credits: 1.5 credits

Recommended Field of Study: Regulatory Ethics - Technical

National Association of Federally-Insured Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more.

About Our Webinars

Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer.

About the Presenter

Dan Stipano, Partner, Buckley, LLC
Dan Stipano

Partner, Buckley, LLC