Before we are able to accept your money, we are required by law to be able to identify you. We need to be sure you are who say you are. Know Your Client (KYC) laws have been put in place globally to prevent money laundering activities. This information further helps us make sure we are looking after your money in a secure environment.
We need your bank details to help us protect your money. When accepting money from you, or paying money to you, we are required by law to make sure it is really your money, and that we are paying it to the right account. We use the documents you have provided to identify yourself to make sure your bank account is in the same name.
Many countries regulate what kind of investments can be made available to investors. The regulations are there to protect you, the investor.
These are experienced investors who understand the risks in investments. The technical definition is an individual who has been an angel investor for at least the last six months, or for at least the last two years has made at least one investment in an unlisted company, has worked in private equity or corporate finance and/or has been a director of a company with an annual turnover of at least $1.2 million.
A High Net Worth Individual (HNWI) is an individual who has self-certified that they had, during the financial year immediately preceding the date in question, an annual income to the value of $120,000 or more; or they held, throughout the financial year immediately preceding the date in question, net assets to the value of $300,000 or more.
These are casual investors or first time investors. The specific definition is an investor who has not invested (and will not invest) more than 10% of their net assets per year in shares, bonds, fund or other investments that are not listed on a stock exchange.
The different KYC status's are as follows: