If I realize capital gains from my investments (seven figures) and can prove the source of funds while passing Enhanced Due Diligence with one institution, would a second institution (a broker) need to redo all the compliance checks if I move the funds to them? Do these institutions communicate with each other? Also, if I take delivery of share certificates (because I don't trust the broker) and sell them through a third institution (another broker, still in my name), would I need to go through Due Diligence checks again?"
AML Compliance - Pass once then all clear OR have to pass each time I move the same money?
- Thread starter fluffypanda
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Different institutions do due diligence/enchanced due diligence on their own, subject to their own policies and procedures.
Unless they're part of one financial group with data sharing channels and processes (and even that fact is not a warranty), there's no data sharing and each institution will be obliged by laws and regulations to carry on separate checks according to their own policies, regulatory requirements and laws where they're incorporated.
What you've described (redemption of certificates and depositing them to another broker) may trigger certain additional checks due to being heightened risk according to risk classification of the receiving broker. Or may not. Too many unknown factors here.
@fluffypanda, @Compliance Circle has described it correctly and in full. Nothing to add.
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