What is the Customer Identification Program and why is it needed?
In today's regulatory environment, identity verification is more crucial than ever before. Many regulations require that information or services are provided only to a customer after verifying the customer's identity. For example, under FERPA, Institutions can only release certain information about a student. The only way to ensure that information is released only to the authorized individual is to verify the person's identity prior to releasing information. To rely on the properties and functions of a university ID card, it is essential that the student's true identity is verified prior to issuing the ID card (regardless of who physically issued the ID card).
Under the Patriot Act and other banking regulations, banks and other parties that handle or transmit funds must have a Customer Identification Program. Currently, many laws and regulations are primarily implemented in the banking industry, but all entities handling large sums of money may become subject to regulatory scrutiny. The Customer Identification Program is necessary to comply with Section 326 of the U.S.A. Patriot Act, passed in an effort to prevent terrorist funds from flowing within the United States banking system. The CIP ensures that required identity information is not only verified but is retained properly. Given the above considerations, Higher One has worked with the FDIC and other regulatory agencies to develop a Customer Identification Program that not only meets regulatory requirements, but also ensures information and customer funds are protected as best as possible. Proper identification ensures not only regulatory compliance and crime prevention, but also that funds continue to be disbursed to the right recipient.
| Approved ID Types |
| Frequently Asked Questions |
| How to verify your identity |
