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Do financial regulations require banks to collect marital status, annual income and liquid net worth in the United States?

Wealthfront is claiming so when creating Individual Cash Accounts:

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Do financial regulations require banks to collect marital status, annual income and liquid net worth in the United States?

Basically, yes, although there is some flexibility regarding how this is done and no one exact government form is required in most cases.

Stock brokers and certain other kindred financial professionals are subject to "know your customer" rules and similar requirements imposed by the Securities and Exchange Commission, by anti-money laundering and sanction enforcement laws, and by state securities acts, or adopted in house as the most expedient way to comply with other obligations of a financial professional (like their more general legal duties to their clients).

In part, this is so that brokers with discretionary trading authority can know how to act consistently with a client's needs which they have a legal obligation to do. In part, this is so that money laundering and international sanctions laws are not violated.

This information (and more) is also needed to evaluate if the customer is eligible to participate in transactions involving securities not registered with the SEC in non-public offerings due to exceptions to the securities laws for "eligible" or "qualified" investors. Some of these exceptions are based upon annual income and liquid net worth.

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