Which of the following is NOT one of the requirements under the CIP for financial institutions?

The rationale for selecting the option regarding providing financial advice to new account holders as not being a requirement under the Customer Identification Program (CIP) is grounded in the core objectives of the CIP. The CIP was established to help financial institutions thoroughly identify their customers as part of their anti-money laundering (AML) efforts.

The primary requirements of the CIP include verifying the identity of individuals opening accounts, determining if those individuals are on government watch lists, and maintaining records of the verification process. These elements are crucial for mitigating risks associated with identity theft and financial crime.

Providing financial advice, while a service that some financial institutions may offer, is not mandated under the CIP regulations. The focus of the CIP is on identification and verification rather than offering personalized financial guidance. This distinction reinforces that the obligations under the CIP are specifically tailored to ensure transparency and security in customer identification processes rather than encompassing broader customer service functions.