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In European countries, fintech organizations depend on certain online registration requirements, including the new European Anti-Money Laundering Directive. However, in the United States, this procedure should be compliant with the standard Customer Identification Program (CIP) and customer due diligence (CDD) requirements to guarantee BSA and AML enforcement. In other words, CIP requirements include confirmation of the identity of clients, and CDD requirements include identification and verification of the identities of beneficial owners of legal entity clients.¹

Fintech companies can enter into partisanship with different American financial organizations in accordance with the CIP program. Their goal is to set up accounts for their potential clients. To succeed, they should access the relevant data:

1. Name
2. Date of birth (for natural persons)
3. Address
4. Identification number (example, a tax identification number)
5. Government-issued document bearing a photograph (for natural person)
6. Government-issued documentation certifying the existence of an entity (for legal entities) ¹

Fintech organizations also need to initiate effective CDD programs and enhanced due diligence programs for the groups characterized as higher-risk customers due to their rather high fund laundering possibilities.¹

Artificial intelligence in financial products

Fintech in the USA

Fintech in other countries

Notes

1. https://thelawreviews.co.uk/title/the-financial-technology-law-review/usa