Government-required identity & anti-fraud checks secure all
transactions. Why Do We Need This?
Since this is a financial transaction we are required by regulators like the
SEC & US Department of Treasury to perform AML (Anti Money Laundering) & KYC (Know Your
Customer) verification in order to avoid money laundering, fraud, and identity
theft.
Our
broker-dealer, DealMaker Securities, LLC uses a Taxpayer Identification Number (TIN), for example Social
Security Number (SSN), Employment Identification Number (EIN), Individual Tax Identification Number (ITIN)
to fulfill its responsibilities with its Anti-Money Laundering (AML) Program as required by the Bank
Secrecy Act (BSA) and its implementing regulations and FINRA Rule 3310 (AML Compliance Program) by
requesting, reviewing, and verifying data and documentation provided during securities transactions, prior
to acceptance.
Here’s why
they are required for startup investments:
1.
Preventing
Illegal Activities: Money laundering involves the concealment or disguise of money derived from criminal
origins by processing it through a single or series of transactions to make it appear as if it comes from
a legal, legitimate source or constitute legitimate assets. Having a verification process, whereby
investors are reviewed, checked against governmental databases, and all investment funds are evaluated,
startups can feel confident they are protecting themselves from civil and criminal penalties and
preventing terrorist financing, drug trafficking, tax evasion, corruption, fraud, and other financial
crimes.
2.
Identity
Verification/Data: KYC processes help collect essential pieces of data and verify the identity and
authority of the investors, ensuring that they are indeed who they claim to be and are authorized to
process the transaction they seek to make. This protects against identity theft and
fraud.
3.
Regulatory
Compliance: Compliance with AML and KYC requirements is mandatory in many jurisdictions. Failure to comply
can lead to severe civil penalties, including heavy fines, and even criminal
penalties.