A Customer Identification Program (CIP) is a set of procedures that financial institutions must follow to verify the identity of their customers. This program is designed to prevent fraud and money laundering by ensuring that institutions know who they are doing business with. Under the USA PATRIOT Act, banks and other financial entities are required to collect specific information, such as name, address, date of birth, and identification numbers. CIPs help create a secure banking environment by establishing a clear process for identifying customers. When opening an account, customers may need to provide documents like a driver's license or passport to confirm their identity. This process not only protects the institution but also helps maintain the integrity of the financial system.