According to the CIP, what type of address is not acceptable for identification?

The correct answer is that a P.O. Box is not acceptable for identification according to the Customer Identification Program (CIP). The CIP is designed to ensure that financial institutions verify the identity of their customers to prevent fraud and other illegal activities.

When verifying identity, a physical address is essential because it provides a tangible location to which an individual can be traced and held accountable. A residential address or a physical address typically contains information about where a person lives, which is crucial for identity verification purposes.

On the other hand, a P.O. Box does not meet the requirements for identification verification because it lacks a direct connection to an individual’s residence. A P.O. Box is simply a postal service box and does not provide adequate proof of a person's physical presence at a specific location. Therefore, using a P.O. Box as an address does not fulfill the compliance obligations set forth by the CIP, which aims for clarity in identifying the individual's true residence to mitigate risks related to money laundering and terrorist financing.