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

<p><a href="https://en.wikipedia.org/wiki/Wealthfront" rel="nofollow noreferrer">Wealthfront</a> is claiming so when creating Individual Cash Accounts:</p>

<p><a href="https://i.stack.imgur.com/oVHHs.png" rel="nofollow noreferrer"><img src="https://i.stack.imgur.com/oVHHs.png" alt="enter image description here"></a></p>

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

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

<p>Stock brokers and certain other kindred financial professionals are subject to "<a href="https://en.wikipedia.org/wiki/Know_your_customer" rel="nofollow noreferrer">know your customer</a>" 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).</p>

<p>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.</p>

<p>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.</p>

united-states banking