Reminder for verifying your investor identity

Consider this post as a kind reminder about verifying your identity for platforms where you have invested. You can disregard this post if you are more responsible. I tend to postpone these things.

When it comes to getting the money to the investment account, P2P lender platforms streamline the process as much as they can. This is for the benefit of us not have to worry about additional steps for verification when we deposit our money.

Background

When you would be willing to take the money out of your account, for most of the platforms you will need to verify your identity. This is due to anti-money laundering law.

It provides that obliged entities shall apply customer due diligence requirements when entering into a business relationship (i.e. identify and verify the identity of clients, monitor transactions and report suspicious transactions).

Anti-money laundering and counter terrorist financing

In other words, if you are not asked for verification and business is operating with customers in EU countries, it is a violation of EU regulation. This should rise your suspicion at the least.

Some might wonder why such long standing investment platform like Crowdestate has decided to introduce this only by the end of 2018, but I will leave it rhetoric because verification is there now.

My verification stats

I did the verification for the following platforms on 7th of Jan (Thursday):

  • Mintos – 07.01.2019 – 09.01.2019 – 2 days (through Veriff)
  • Envestio – 07.01.2019 – 08.01.2019 – 1 day
  • Fast Invest – 07.01.2019 – 15.01.2019 – 8 days
  • Grupeer* – 07.01.2019 – around 2 days, could not find precise end date
  • Crowdestate – 07.01.2019 – couple of hours through Veriff

* for Grupeer I have only registered but not made any investments so far.

Example of Crowdestate verification completed

After this is out of the way, you can relax without worries. It is an assurance that you can withdraw your funds at the time you need them. At minimum it is guarantee that you are first in the queue in case anything “goes South”.

Some go further and do a withdraw. It is good practice because you can estimate the fees and the actual amount which reaches your account. My only withdraw was from Mintos for previous reasons.

Summary

You can see that even if your platform of choice performs verification in couple of hours, there is no such thing as instant verification. If you do it now, this will literally “pay you back” in longer run.

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