A Customer Identification Program (CIP) is a mandatory provision of the Bank Secrecy Act (specifically introduced by the USA PATRIOT Act). It requires financial institutions to form a reasonable belief that they know the true identity of every customer or business opening an account.
The Baseline of Merchant Onboarding
Before an underwriter can assess the risk of a merchant's website or processing volume, they must complete the CIP. This requires collecting a minimum set of data: Name, Date of Birth (for individuals), Address, and an Identification Number (like a TIN or SSN). The institution must then verify this data through documentary or non-documentary methods.
Frictionless CIP Verification with Onlayer
Manual ID verification creates massive friction during onboarding. Onlayer automates the CIP phase by supporting self-submitting merchant models. Merchants can securely upload their incorporation documents and IDs, and Onlayer strictly assesses their eligibility in minutes—replacing slow manual reviews with instant, data-driven identity verification.
