Interactive Brokers - Compliance questions regarding deposits

[bigbite100]

Hello,

IB sent this message:


Interactive Brokers Group noted there were frequent deposits to and/or withdrawals initiated from your account. To ensure that these deposits and withdrawals were intentional and by order of your account, please provide responses to the following questions:

1. What is the reason for the number of deposits to/withdrawals from your account?
2. Other than you, and any other individual(s) that you have already authorized on your account, is there anyone else that may be logging into or trading using your account?
3. If yes, provide the name and your relationship to the individual(s) that may be logging into or trading using your account.

In addition, please:

1. Add the individual(s) who are accessing your account so that each has their own username.
2. Provide documentation with information identifying the source of funds for the deposits (transaction order, agreement, invoice, payslip, bank statements etc.).
3. Please explain and confirm the activity of your business. Please attach last year's financial statement.

We ask that you respond to this request within 7 days or restrictions may be placed on your account.

what should I answer, especially for questions 5 and 6? i dont have a financial statement and I dont know what to send as a source of funds. just few invoices which were sent to the customer?

And what kind of restrictions would they set? Will they close the account and keep the money?

 

[thomasparra]

1. Are you allowing third parties to access your IB account (other companies or individuals)?
2. Do you use your IB in a professional context? Does IB have any reason to think you are using this account in any other ways than solely individual purposes, for yourself?
3. Do you use a VPN or do you login on your IB account through various IP addresses?
4. How frequent and large these deposits/withdrawals are compared to your average equity (including cash) balance on the platform?

 

[bigbite100]

1. Are you allowing third parties to access your IB account (other companies or individuals)?
2. Do you use your IB in a professional context? Does IB have any reason to think you are using this account in any other ways than solely individual purposes, for yourself?
3. Do you use a VPN or do you login on your IB account through various IP addresses?
4. How frequent and large these deposits/withdrawals are compared to your average equity (including cash) balance on the platform?

Thank you for your reply.

1. No I don´t
2. Do you mean in any connection to a business? No, also no daytrading or something. Only ETFs.
3: Yes, that might be a reason why they are alerted.
4. Average equity 60k, 3 recent withdrawals with 6-8k. Nothing big.

what would you recomment to answer for questions 5 and 6? i dont have a financial statement and I dont know what to send as a source of funds. just few invoices which were sent to the customer?

And what kind of restrictions would they set? Will they close the account and keep the money?

 

[Mike Forman]

These are small amounts, it's weird they ask these questions.

As source of your funds you can just indicate where they came (savings is ok) and send the statements it was transferred from your own personal bank account. That should be sufficient as when it comes from your personal account they already expect your bank did the due diligence.

In which country are you registered and do you transfer from the same country money?

 

[bigbite100]

These are small amounts, it's weird they ask these questions.

As source of your funds you can just indicate where they came (savings is ok) and send the statements it was transferred from your own personal bank account. That should be sufficient as when it comes from your personal account they already expect your bank did the due diligence.

In which country are you registered and do you transfer from the same country money?

Thank you for the tip.

Registered in CY, bank was in DXB

 

[TheCryptoAnt]

1. am broke, need monies
2. nah
3. refer to 2

stupid questions deserve stupid answers

if you dont have invoices/payslips just create ones with photoshop

 

[avalanche]

1. am broke, need monies
2. nah
3. refer to 2

stupid questions deserve stupid answers

if you dont have invoices/payslips just create ones with photoshop

That kind of answers will get your account closed and nothing else lol

 

[JohnnyDoe]

That kind of answers will get your account closed and nothing else lol

Ask chatgpt to expand that answer in order to please bank compliance monkeys. Specify “write a long elaborated text using clever words”

 

[avalanche]

Ask chatpgp to expand that answer in order to please bank compliance monkeys. Specify “write a long elaborated text using clever words”

I wouldn't trust GPT talking with a potential infrastructural bloodline of my business

 

[JohnnyDoe]

Here is your AI generated reply. Feed the monkeys with premium quality nonsense!

1. In an unequivocal and florid manner, permit me to elucidate the circumstances surrounding the inquiry concerning the accessibility of my IB account by external entities, be they corporate or individualistic in nature. To encapsulate the essence of my response in an eloquent, albeit extensive, exposition, I am compelled to assert that my current fiscal predicament is one characterized by a lamentable dearth of pecuniary resources, rendering me veritably impecunious. As such, I am in the unenviable position of requiring monetary sustenance, and thus, it behooves me to assiduously safeguard the sanctity and exclusivity of my IB account, refraining from granting ingress to extraneous third parties.
2. With respect to the query regarding the utilization of my IB account within a professional context, and whether the esteemed institution has any cause to suspect that my employment of the account transcends the boundaries of individual purposes, I shall endeavor to furnish a response that is both prolix and perspicacious. In an unambiguous and categorical manner, I must declare that my usage of the aforementioned account is strictly circumscribed to personal intentions, devoid of any professional entanglements or objectives. Consequently, I can assert with conviction and certitude that there exists no legitimate rationale for IB to harbor any suspicions or misgivings concerning the nature of my engagement with the account, as it remains wholly confined to the realm of individual pursuits.
3. In response to the interrogation pertaining to the employment of a VPN or the utilization of disparate IP addresses whilst accessing my IB account, I find it incumbent upon myself to provide an extensive and articulate elucidation. To ensure that the essence of my rejoinder is effectively conveyed, I shall refer to my previously proffered response, which can be succinctly encapsulated in the unassuming and monosyllabic word: "no." By invoking this simple, albeit potent, retort, I seek to impart the notion that the employment of a VPN or the adoption of varied IP addresses is a practice that is foreign to my modus operandi in the context of my interaction with the IB account.
4. With regard to the frequency and magnitude of deposits and withdrawals juxtaposed against the average equity balance, encompassing cash, on the platform, allow me to furnish a verbose and insightful analysis. The transactions occurring within the purview of my account are characterized by a moderate cadence, neither too sporadic nor too persistent, striking a judicious balance between prudent fiscal management and the exigencies of my personal circumstances. As for the magnitude of these transactions, they bear a commensurate proportionality to the prevailing equity balance, thus maintaining a harmonious equilibrium between inflows and outflows, ensuring that the account retains a semblance of stability and coherence in the face of the capricious whims of the financial landscape.

 

[thomasparra]

Thank you for your reply.

1. No I don´t
2. Do you mean in any connection to a business? No, also no daytrading or something. Only ETFs.
3: Yes, that might be a reason why they are alerted.
4. Average equity 60k, 3 recent withdrawals with 6-8k. Nothing big.

what would you recomment to answer for questions 5 and 6? i dont have a financial statement and I dont know what to send as a source of funds. just few invoices which were sent to the customer?

And what kind of restrictions would they set? Will they close the account and keep the money?

As said above just feed them a generic answer. A screenshot of the transaction in your saving account should suffice.

These sums are low, I never got this issue before even though I have used IB in various juridictions/countries.

Maybe you are using a shady VPN or really use too many different IPs from random countries. I would suspect this is the most likely cause. Using a regular/Main Street VPN instead of one offering dynamic IPs from random countries should not trigger this though

 

[reallyawesome1111]

Why are you using a VPN? Every single risk management system flags these IP addresses because they are owned by M247 or they flag datacenter IPs in general. Use a static residential proxy - to the fraud systems it will just look like a Comcast IP and you can get unlimited bandwidth proxies for a few dollars a month. There is a forum that is a little seedier than this one called BHW where you will find 100 providers offering them. After you set it up visit Find and check IP address to make sure your setup is not leaking anything.

 

[JackAlabama]

Why are you using a VPN? Every single risk management system flags these IP addresses because they are owned by M247 or they flag datacenter IPs in general. Use a static residential proxy - to the fraud systems it will just look like a Comcast IP and you can get unlimited bandwidth proxies for a few dollars a month. There is a forum that is a little seedier than this one called BHW where you will find 100 providers offering them. After you set it up visit Find and check IP address to make sure your setup is not leaking anything.

vpns alone should not trigger that at all. I use vpns with them all the time. Never faced any questions.
Also doesnt make sense to ask funding related questions because of different ips.

His usage pattern most likely triggered them.

 

[TheCryptoAnt]

That kind of answers will get your account closed and nothing else lol

ive been giving them answers like this for over a year lmao
Same to Binance.

the one I use the most is 'dis monie entering the acc now is the same 1 leaving it X weeks ago. Plz stop asking retarded questions'

 

[JohnnyDoe]

ive been giving them answers like this for over a year lmao
Same to Binance.

the one I use the most is 'dis monie entering the acc now is the same 1 leaving it X weeks ago. Plz stop asking retarded questions'

Be careful, monkeys are sensitive. You should always praise them for their great work and express your gratitude for allowing you to enjoy your banking/brokerage privileges. Give them bananas, not slaps.

 

[JackAlabama]

Be careful, monkeys are sensitive. You should always praise them for their great work and express your gratitude for allowing you to enjoy your banking/brokerage privileges. Give them bananas, not slaps.

Good advice

 

[JohnnyDoe]

Successful negotiation of everyday life would seem to require people to possess insight about deficiencies in their intellectual and social skills. However, people tend to be blissfully unaware of their incompetence. This lack of awareness arises because poor performers are doubly cursed: Their lack of skill deprives them not only of the ability to produce correct responses, but also of the expertise necessary to surmise that they are not producing them. People base their perceptions of performance, in part, on their preconceived notions about their skills. Because these notions often do not correlate with objective performance, they can lead people to make judgments about their performance that have little to do with actual accomplishment.

Source: “Why People Fail to Recognize Their Own Incompetence” from Current Directions in Psychological Science

In other words: stupid people are too stupid to realize they’re stupid.

Bonhoeffer:

Stupidity is a more dangerous enemy of the good than malice. One may protest against evil; it can be exposed and, if need be, prevented by use of force. Evil always carries within itself the germ of its own subversion in that it leaves behind in human beings at least a sense of unease. Against stupidity we are defenseless. Neither protests nor the use of force accomplish anything here; reasons fall on deaf ears; facts that contradict one’s prejudgment simply need not be believed- in such moments the stupid person even becomes critical – and when facts are irrefutable they are just pushed aside as inconsequential, as incidental. In all this the stupid person, in contrast to the malicious one, is utterly self-satisfied and, being easily irritated, becomes dangerous by going on the attack. For that reason, greater caution is called for than with a malicious one. Never again will we try to persuade the stupid person with reasons, for it is senseless and dangerous.

 

[TheCryptoAnt]

Be careful, monkeys are sensitive. You should always praise them for their great work and express your gratitude for allowing you to enjoy your banking/brokerage privileges. Give them bananas, not slaps.

They are indeed lol. I've gotten some 'offended' responses already, to which I reply 'English is not my first language, please refer to my withdrawal history for more info'

I dont do this with banks tho, as those accs are more difficult to get.

 

[bigbite100]

Hey guys, just sent them an explanation and recieved this message:

1. Provide documentation with information identifying the source of funds for the deposits (transaction order, agreement, invoice, payslip, bank statements etc.).

2. Please explain and confirm the activity of your business. Please attach last year's financial statement.


For 1, I will just sent a bank statement. Hope this will be enough

For 2. - I dont have a financial statement (yet). What should I do? Any tools to generate one or any other solution?

Thank you in advance.

 

[backpacker]

Hey guys, just sent them an explanation and recieved this message:

1. Provide documentation with information identifying the source of funds for the deposits (transaction order, agreement, invoice, payslip, bank statements etc.).

2. Please explain and confirm the activity of your business. Please attach last year's financial statement.


For 1, I will just sent a bank statement. Hope this will be enough

For 2. - I dont have a financial statement (yet). What should I do? Any tools to generate one or any other solution?

Thank you in advance.

What is it that they have with your "business"? Did you indicate to be an entrepreneur or business owner??