SIE Exam Question 614: Answer and Explanation

Question: 614

Which of the following is a requirement in which financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them?

• A. Automated Client Account Transfer Service
• B. Customer Identification Program
• C. Trade Reporting and Compliance Engine
• D. None of the above are correct.

Correct Answer: B

Explanation:

The Customer Identification Program (CIP) is a requirement in which financial institutions need to verify the identity of individuals wishing to conduct financial transactions with them.