Are you shopping around for private investors and investing companies to finance your next real estate project? I came across this excellent post by Gavin Sorensen on how to avoid scammers that say they can loan you money, but are really just out to shaft you out of yours. Be sure to read this and pay attention when you are approached by someone that wants to loan you money. Thanks to Gavin for letting me re-post this!
Avoid individuals and organizations which:
- do not have a company website.
- cannot easily lead you to their corporate documentation.
- do not have legal counsel, regulation and guidance
- do not maintain strict client confidentiality standards
- do not perform the KYC check
- do not have a strict and transparent business model to protect the client and themselves from fraud
Legal Counsel – Any reputable organization shall have legal representation to ensure transactions and communications (paper and electronic) meet the strict standards of client confidentiality, the US Patriot Act and other International regulations that may be applicable.
Visit http://www.fincen.gov/ – Financial Crimes Enforcement Network: US Dept. of Treasury
Visit http://insidetradellc.com/ – Source for blacklisted companies and brokers
Any reputable company shall perform KYC (Know Your Customer) checks, which refers to the regulatory compliance mandate imposed on financial service providers to implement a Customer Identification Program and perform due diligence checks before doing business with a person or entity. KYC fulfills a risk mitigation function, and one its key requirements is checking that a prospective customer is not listed on any government lists for wanted money launders, known fraudsters or terrorists.
If preliminary KYC checks reveal that the person is a Politically Exposed Person (PEP), for example, Advanced Due Diligence must be done in order to ensure that the person’s source of wealth is transparent, and that he or she does not pose a reputational or financial risk in terms of their finances, public positions or associations.
In order to meet KYC compliance requirements, financial institutions must:
- Verify that customers are not or have not been involved in illegal activities such as fraud, money laundering or organized crime
- Verify a prospective client’s identity
- Maintain proof of the steps taken to identify their identity
- Establish whether a prospective customer is listed on any sanctions lists in connection with suspected terrorist activities, money laundering, fraud or other crimes.
Gavin Sorensen, FICArb.E, Deputy Registrar – International Court of Arbitration in Europe
Managing Partner – Untad Global – worldwide financing
UNTAD GLOBAL – worldwide financing
(division of Lestrade Law Associates International LLC Group)
Email: gavin.sorensen@untadglobal.co.cc