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The CIP Process

What is the CIP Process for HSA accounts and what is required of the participants?
Written by Rachael Seida
Updated 3 months ago
  • Customer Information Program (CIP) is a combination of requirements set forth in Section 326 of the USA Patriot Act. The Act states that all financial institutions must verify the identity of individuals wishing to conduct financial transactions with them. A Health Savings Account (HSA) is a bank account established with Avidia Bank which is why Avidia Bank is required to follow the CIP verification process. The Customer Identification Program is intended to enable the bank to form a reasonable belief that it knows the true identity of each customer.
  • The CIP process is required for all participants who enroll in an HSA. Avidia Bank will run the test to verify the identity of the enrollee. The verification process reviews the participant’s Social Security Number, home mailing address, date of birth, and full legal name, against two federal databases. Usually this happens behind the scenes without issue, but occasionally outdated or missing information will cause the bank to reach out for more information. If there are any irregularities, it could cause a CIP failure on the account. For example, if an employee recently moved, this could cause a CIP failure.
  • If an account fails the CIP process due to an address, nickname, or an incorrect date of birth, they will request additional information to verify the information that was provided. The notification will be sent via email, so please advise that participants pay attention to their emails. Some items that can be requested to be returned to Avidia are: copy of driver's license, copy of a birth certificate, and/or a copy of a utility bill, etc.
  • Once the participant passes the CIP process, an HSA account number will typically be available to the employer within the next business day. Accounts cannot be funded until an account number has generated. Please note that these account numbers will need to be requested directly from your Client Relationship Manager if you are funding the accounts via direct deposit.
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