What is KYC & AML Verification and why do we require it for every funded trader with TradeShield?
TradeShield Staff
Last Update 8 days ago
Before we can process your first payout as a funded trader, you must complete our Know Your Customer (KYC) and Anti-Money Laundering (AML) verification. This isn't just a formality; it's a critical part of our commitment to maintaining a secure and trustworthy trading environment. By adhering to these strict international financial regulations, we protect both you and our firm from illegal activities.
KYC is the process of verifying a client's identity. This crucial step allows us to confirm you are who you say you are, which is essential for preventing fraud, terrorist financing, and other financial crimes.
AML refers to the systems and policies we have in place to stop the flow of money earned through illegal means. Criminals often try to make illicit funds appear legitimate by moving them through a financial system. Our AML procedures are designed to detect and block this activity, ensuring all payouts are transparent and legally sound.
Compliance with KYC and AML laws is a legal obligation for any financial institution. Failing to follow these regulations could lead to severe consequences for our firm, including significant fines, legal penalties, and reputational damage.
By verifying every funded trader, we can guarantee that all payouts are processed securely, transparently, and in full compliance with the law. This protects our entire community and ensures a safe platform for your trading success.
To ensure a seamless and secure experience, our identity verification process is handled by our trusted partner, Plaid. Here’s a breakdown of the steps you will complete:
Identity & Address Verification: You will be prompted to upload a clear photo of your government-issued ID (such as a passport or driver's license) and a document to prove your current address. Plaid's system will then verify the authenticity of these documents.
Biometric Liveness Check: This step involves a quick facial recognition scan. It's a key security measure that ensures the person submitting the documents is a live individual and matches the photo on the provided ID. This protects against fraud and the use of stolen identities.
AML Screening: In the background, Plaid's system automatically screens your information against global sanctions lists, government watchlists, and politically exposed persons (PEP) databases. This is a critical part of our Anti-Money Laundering (AML) compliance.
Email & IP Verification: As a final layer of security, Plaid's advanced risk engine analyzes your email address and IP information to check for any inconsistencies or red flags that could indicate fraudulent activity.
This multi-layered approach ensures a high level of security and compliance for both you and our firm, allowing us to process your payouts with confidence.
Can I get funded without completing KYC and AML verification?
No, this verification is a mandatory and non-negotiable step before any payouts can be processed. It is a legal and regulatory requirement for all financial firms, including ours. We cannot legally fund or pay a trader who has not successfully completed this check.
Do I have to complete this even if I live in the US?
Yes. These are global financial regulations, not just international ones. Every single trader, regardless of their country of residence, must complete these checks before receiving a payout.
How secure is my personal data with your provider?
Your security is our highest priority. We have partnered with Plaid, an industry leader in financial services security, to handle this process. Plaid uses advanced encryption and bank-level security protocols to ensure your sensitive data is protected at all times.
We look forward to seeing you reach the funding stage and begin your successful journey with us.
All traders who successfully complete an evaluation must pass KYC/AML verification with our third-party provider before being issued a funded account.
If your KYC/AML verification fails, you will not be eligible to receive a SIM funded account and/or live account.
In this case, TradeShield will refund any activation fee(s) you have paid.
Please note: Evaluation fees are non-refundable, as they cover the cost of participation in the evaluation process.