Any licensed or Regulated Market Maker or Broker has an obligation under “Regulations” to do Due Diligence” (DD) and follow Know Your Client (KYC) procedures.
This means, as far as possible they have to
- Verify who, and where, you are.
- Means test you, to see if you are suitable for the industry, the amount you can invest compared to your income etc.
- Make sure (as far as possible) where your funds have come from (legitimate sources)
This is achieved in a number of ways.
- You will be asked to produce CLEAR, COLOUR, Copies of
- POI= Proof of Identity, this is usually a Current Passport or Driving licence. There are a number of other “Official Government Documents” that may be accepted at the discretion of the Broker and the Regulatory body.
- POR = Proof Of Residence, this is also a CLEAR, COLOUR, copy of a utility bill, rental agreement etc, that is No older than 3 months.
- At minimum, at least one phone call to the number you have provided on your account details, to verify yourself and the number.
- Additionally, when you sign up for an account, there should be a means test questionnaire that will need to be answered honestly. This questionnaire will ask simple questions such as, Profession, income, investment experience etc. This then allows the company to evaluate you as a potential client.
If the supplied documents are not CLEAR,COLOUR, copies you will be requested to produce them again. Corporate accounts will entail further detailed documentation such as
- Company registration
- Memorandum of articles
- POI/POR of any directors and/or shareholders
At any point in time the company may request further documentation to be produced.
IT IS IMPORTANT TO UNDERSTAND, IF YOU DO NOT PROVIDE THIS DOCUMENTATION AS SPECIFIED YOU WILL NOT BE ABLE TO WITHDRAW YOUR FUNDS.