What are the KYC/AML requirements you may have for any custodian, trust, IRA, and self-directed IRA accounts? How does your system handle these type of accounts?

When creating the account in our API, the account type can be used to identify between Individual, Entity, TIC (tenants in common), JTWROS (joint trust with rights of survivorship), IRA (Individual Retirement Account), SepIRA, ROTH, and Joint...

Our system is set up to allow for different account types to fit our clients' needs. When creating the account in our API, the account type can be used to identify between Individual, Entity, TIC (tenants in common), JTWROS (joint trust with rights of survivorship), IRA (Individual Retirement Account), SepIRA, ROTH, and Joint.

North Capital (as escrow facilitator only) does not have specific requirements since the issuer or broker dealer would normally determine the account types allowed and requirements for their offering. For entities or trusts that are requested for our North Capital's team to complete KYB (Know Your Business) checks, we will collect entity documents and documentation on any other entities or individuals that own 25% or more in the entity or trust that is under review. The account (createAccount) record would be created in the TransactAPI system for the entity and party objects created for all owners of 25% or more of the entity and the entity itself. The individual party(ies) would need to have the auto KYC/AML check(s) done. The entity party would only need the AML check performed. The manual KYB check would then take place to confirm that all owners are listed and that all KYC/AML checks have been done for each entity/individual of 25% ownership or more.

For retirement accounts, the investment process can be impacted depending on the custodian used to hold the cash and securities on behalf of the investor. North Capital clients will typically identify the account in the API as an IRA and include the custodian name in the account name (example: Custodian Name FBO John Smith). They will link a party that identifies the individual owner of the account and run a standard KYC/AML check on that individual.