ARE INVESTORS REQUIRED TO FILL OUT AN "Investor Information Request Form"?

investor profile

July 19, 2018

by an investor from London Business School in Charlotte, NC, USA

Curious if any searchers that recently closed a deal were required to have their investors fill out an "Investor Information Request Form"?

From the sheet I saw, some of the questions for investors to answer include:

  1. Name
  2. SSN or entity ID
  3. DOB
  4. Place of birth
  5. Home address and phone
  6. Veteran/Gender/Race/Ethnicity data
  7. Are you presently suspended, debarred, proposed for debarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency?
  8. Citizenship
  9. Have you, or any business you controlled, ever filed for bankruptcy protection?

Appreciate input.

Thanks, Matt

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commentor profile
Reply by a searcher
from University of Kentucky in Chicago, IL, USA
Matt, I expect the form you are referencing was required by a bank that provided financing for the deal. If so, it is part of the US Dept. of Treasury's new Customer Due Diligence (CDD) Rule which is a new anti-money laundering requirement that took effect on May 11, ###-###-#### In summary, it requires banks to gather information on both (i) owners of 25% or more of the equity in the business (banks have discretion to lower this threshold to as low as 10% for customers they deem high risk) and (ii) at least one individual that will control / mange the business (i.e., CEO, CFO).
commentor profile
Reply by a searcher
in Toronto, ON, Canada
Is this form being filled for your internal requirements or to satisfy a regulatory or third party?
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+1 more reply.
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