Everyone who opens a bank account, an investment account, or any kind of account with a financial organization is required by law to comply with “Know Your Customer” procedures. Commonly referred to as ‘’KYC’’, it is a process by which financial companies obtain a minimum amount of basic information about the identity and address of their customers. The KYC process is there to ensure that financial organizations, like banks and binary options service providers for instance, are not misused.
Stern Options Anti-Money Laundering Policy
Money laundering is the act of converting money or other monetary instruments gained from illegal activity into money or investments that appear to be legitimate, in order that any illegal source cannot be traced. International laws relating to companies whose customers can deposit and withdraw money from their accounts, mean it is illegal for Stern Options, including its employees or agents, to knowingly engage, or attempt to engage in financial transactions involving money that is derived from criminal activity, including money from the illegal drugs industry, and the funding of terrorism.
What are the KYC compliance documents you are required to submit?
There are four kinds of compliance documentation you will be asked to submit. As follows:
1. Government Issued ID / Driver’s License / Valid Passport
If you are sending a copy of an ID card or Driver’s Licence you will be asked to submit a copy of the front and back of the document.
2. An official utility bill, such as an electricty / water / gas / phone bill OR a bank statement
This document is required as proof of your address. You must ensure that it has been issued in your name, and that it shows your current address. It must be a document that is not more than 3 months old.
3. Credit Card / Debit Card
You must submit copies of the front and the back of the Credit or Debit Card(s) which you use to make your deposit(s). Your copies must clearly show the cardholder’s name, and the Card’s expiry date.
You are required to make sure that parts of the long sixteen digit number on the front of the card are clearly visible. The rules require the first six and the last four digits of the long number (e.g., 1234 56xx xxxx 1234) are clearly visible.
For the back of the card, you must make sure your copy shows the signature of the cardholder and (if these are printed on your actual card) the last four digits of the card number.
For your protection, you will be advised to cover the 3-digit security code (also known as the CVV number) before you make the copy.
4. Declaration of Deposits (DOD)
A Declaration of Deposits form will be sent to you for signing. You DOD is the receipt and confirmation that you agree that the deposits you have made are correct.
What form of KYC copies are required?
You can make your copies as scans or photos, but all copies must be in color. You must also ensure that all four corners and edges of the documents are clearly visible in the copies.
I have been through this process, and it is really simple and straightforward. If, however, you have any difficulty or problems submitting your documentation, then Stern’s customer support team are really helpful.
If you are considering opening a trading account with a binary options company, and you find that company does not maintain a KYC policy, then you should definitely not put your trust in them. The ‘Know Your Customer’ Policy, commonly referred to as ‘KYC’, is a mandatory framework for all banks and other financial institutions used for customer identification process. To comply with international regulations that protect against various kinds of fraud, money laundering and terrorist financing.