Is it dangerous not to specify that you are employed in your broker account?

when you register at any broker they usually require you to tell if you are employed and give all the info about your employer including name of organization, address, postal code etc


is it dangerous to lie about that? i would prefer to choose that i am unemployed and not specify all that (i am employed though full time)

i am outside US (Russia)

 

US broker will with hold tax on div and profits. And may not allow margin account.

 

Its called KYC/AML.

Trust me, don't lie. There are various ways they can smell fish, and if they do, your life can and WILL be made very miserable indeed.

And no, I'm not exaggerating. You really, really, really don't want to be on the receiving end of a KYC/AML red-flag.

The fact you are based in Russia is not going to be beneficial for your cause either, you've already got one risk indicator against your name before they get started reviewing your application.

 

A friend of mine put down he was self employed and he is having a hell of a time with account setup.

 

Thanks for your reply

Can you tell how they use that info? What a US broker do with my employer info? Contant my employer to verify I work there? Or what?

 

It depends on a lot of factors, so there is unfortunatley no simple answer to that question.

But to give you one example that will apply to everyone is on the AML side, they'll want to know what your "source of funds" is and whether it ties up with what you have declared.

For most people it is unlikely they will contact the employer unless there is a specific compliance need to. They will validate the information you provide against other sources, and if it doesn't tie up, they will make further enquiries.

 

Thanks for detailed response!

The reason i don't want to give broker that info is that i am afraid they contact my employer to verify my work place and my employer will find out about me opening broker account (there is reason i don't want him to know, to put it simple - he thinks all the internet trading is scum and any person who tries to participate in that is an idiot, so that will just put me in bad position in his eyes)

other than that i am okay to share my work info with broker

 

as a financial institution, they need to know their clients and verify who they are. this is to prevent identity theft, financial fraud, money laundering and terrorist financing (The concept is called K.Y.C).

 

K.Y.C. = Kiss Your Cousin?

 

KYC/AML

Keep Your Cash All Month Long.