Which pillar of the BSA requires policies and procedures to obtain and verify identity?

• A. Compliance Officer
• B. Customer Due Diligence
• C. Training
• D. Internal Audit

Answer: (B)

Knowing your customer and confirming who they are is the focus here. Customer Due Diligence requires policies and procedures to obtain identifying information and verify it for each customer, especially at onboarding and as part of ongoing monitoring. This verification creates a trusted picture of the customer’s identity and risk, which is essential for determining appropriate due diligence and detecting suspicious activity. While the Compliance Officer, Training, and Internal Audit support the AML program in different ways, they do not themselves impose the specific identity-verification requirements described by this pillar; the obligation to obtain and verify identity falls under Customer Due Diligence.