Investors need to upload IDs on DealMaker primarily to comply with regulatory requirements such as Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. These regulations mandate that financial institutions and platforms verify the identity of their investors to prevent fraud, money laundering, and other illegal activities.
Here are the key reasons why uploading IDs is necessary:
1. Compliance with Regulations: AML and KYC regulations require platforms to verify the identity of investors. This helps in preventing illegal activities such as money laundering and fraud.
2. Verification of Information: The uploaded ID is used to verify that the information provided in the subscription agreement, such as the investor's full legal name and physical address, is accurate. This is crucial for ensuring the integrity of the investment process.
3. Handling Flagged Investors: For investors flagged during the review process, a copy of their ID is required to compare against enforcement lists and ensure there are no sanctions or mismatches. This step is essential for maintaining compliance and security.
4. International Investors: Due to limited databases and information available for international investors, they are specifically required to upload IDs. This helps in verifying their identity and ensuring compliance with international regulations.
In summary, the requirement for investors to upload IDs is a crucial step in ensuring compliance with legal and regulatory standards, thereby safeguarding the investment process and maintaining the integrity of the platform.