According to the Customer Identification Program, how quickly must broker-dealers verify each customer's identity?

The correct answer is that broker-dealers must verify each customer's identity within a reasonable period. The Customer Identification Program (CIP) is part of the USA PATRIOT Act aimed at preventing money laundering and terrorist financing. The requirement to verify a customer's identity is to ensure that broker-dealers can confirm that they are doing business with legitimate individuals.

The task of verification is critical in maintaining the integrity of the financial system and helps to protect both the broker-dealer and the markets from fraud. The term "reasonable period" indicates that there is flexibility in how quickly this verification should occur, allowing for the broker-dealer to gather necessary information without causing potential delays in customer service. This approach recognizes that immediate verification may not always be feasible, while still enforcing the importance of timely compliance with identity verification requirements.

The other answer choices suggest more rigid timelines or conditions that do not align with the intent of the regulation, which aims for a balance between customer service and regulatory compliance.