It’s Simple, You Don’t Exist

Recently I had the privilege to open a small investment account for a young woman in her early twenties.

Shortly after opening the account she received a letter from the investment company asking for proof of her identity, such as a copy of her driver’s license, social security card, passport, etc.,.
She called me, a little concerned that the request might be a scam of some sort and someone might be trying to steal her identity.

I assured her the request was legit; it was simply because she doesn’t exist. That didn’t sit very well with her either. I went on to explain all financial institutions, such as banks, mutual fund and insurance companies are required to verify the identity of anyone they are holding money for, in order to comply with anti-money laundering laws. She owned no real property, did not have a credit card, never paid a utility bill, so when a background check was run, she didn’t show up. She didn’t exist.

She brought in the requested information so we could send it in for her. Then we discussed how she could become “a real person”. We talked about ways to responsibly establish a credit history when just starting out on your own. She expressed some frustration when she said, ”Why don’t they teach us this stuff in school?”

That, is a topic for another day.