Know Your Customer (KYC) Verification Procedures Checklist

This comprehensive know your customer (kyc) verification procedures checklist ensures regulatory compliance with FinCEN, FATF, OCC, FDIC, 31 CFR 1020.220. Standardized KYC verification checklist for financial institution customer onboarding covering identity verification, document authentication, PEP screening, and adverse media per FinCEN Customer Identification Program (CIP) requirements, FFIEC Bank Secrecy Act guidance, and FATF Recommendation 10 customer due diligence standards.. Complete al

Industry: Financial Services & Banking
Frequency: Monthly / Quarterly
Estimated Time: 30 minutes
Role: Compliance Officer / Branch Manager
Total Items: 20
Compliance: FinCEN, FATF, OCC, FDIC, 31 CFR 1020.220

Customer Identity Verification

Verify identity per CIP requirements at 31 CFR 1020.220.

Has government-issued photo ID been obtained and recorded (passport, driver's license, national ID)?
Have ID security features been examined for signs of tampering, alteration, or fraud?
Has current residential address been verified via utility bill, bank statement, or address database?
Have date of birth and tax identification number been collected per CIP minimum data requirements?
Has identity been verified via documentary method, non-documentary method, or both per CIP procedures?
Are identity verification records retained for 5 years after account closure per CIP recordkeeping requirements?

Business and Legal Entity Customers

Verify business customer due diligence per FinCEN CDD Rule.

Have formation documents (articles of incorporation, operating agreement) been obtained for business customers?
Have all beneficial owners with 25%+ ownership identified, verified, and documented per FinCEN CDD Rule?
Has one control person with significant management responsibility been identified and verified?
Has nature of business, source of funds, and expected transaction activity been documented?
Have applicable business licenses or professional certifications been verified for regulated business types?

PEP, Sanctions, and Adverse Media Screening

Screen per OFAC and FinCEN guidance.

Has OFAC SDN and Consolidated Sanctions list screening been completed with results documented?
Has Politically Exposed Person (PEP) screening been conducted against commercial PEP database?
Has adverse media screening been conducted to identify negative news about customer or associates?
Has State Department and OFAC country sanctions list been checked for international customers?
If customer identified as PEP, has enhanced due diligence been applied with senior management approval?

Risk Rating and Ongoing Monitoring

Assign risk rating and establish monitoring per CDD Rule.

Are all risk factors (industry, geography, transaction types, customer history) documented for risk rating?
Has EDD been applied where risk rating triggers it per written EDD policy?
Has transaction monitoring profile been established based on expected account activity?
Is periodic review schedule established based on risk rating (high-risk: annual, low-risk: triennial)?

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Why Use This Know Your Customer (KYC) Verification Procedures Checklist?

This know your customer (kyc) verification procedures checklist helps financial services & banking teams maintain compliance and operational excellence. Designed for compliance officer / branch manager professionals, this checklist covers 20 critical inspection points across 4 sections. Recommended frequency: monthly / quarterly.

Ensures compliance with FinCEN, FATF, OCC, FDIC, 31 CFR 1020.220. Regulatory-aligned for audit readiness and inspection documentation.

Frequently Asked Questions

What does the Know Your Customer (KYC) Verification Procedures Checklist cover?

This checklist covers 20 inspection items across 4 sections: Customer Identity Verification, Business and Legal Entity Customers, PEP, Sanctions, and Adverse Media Screening, Risk Rating and Ongoing Monitoring. It is designed for financial services & banking operations and compliance.

How often should this checklist be completed?

This checklist should be completed monthly / quarterly. Each completion takes approximately 30 minutes.

Who should use this Know Your Customer (KYC) Verification Procedures Checklist?

This checklist is designed for Compliance Officer / Branch Manager professionals in the financial services & banking industry. It can be used for self-assessments, team audits, and regulatory compliance documentation.

Can I download this checklist as a PDF?

Yes, this checklist is available as a free PDF download. You can also use it digitally in the POPProbe mobile app for real-time data capture, photo documentation, and automatic reporting.