Nominee Account
Securities held by a custodian for the true owner, recorded as the nominee.
Detailed Description
Nominee Account
What is a nominee account?
A nominee account is an investment account opened in the name of a nominee who acts on behalf of the actual owner, allowing for anonymity.
What are the main benefits of using a nominee account?
Benefits include privacy, simplified management, ease of asset transfer, and access to professional services.
What types of nominee accounts exist?
Types include individual nominee accounts, corporate nominee accounts, trustee nominee accounts, and custodial nominee accounts.
What are the risks associated with nominee accounts?
Risks include lack of control, potential for mismanagement, and legal/regulatory risks.
What regulatory considerations apply to nominee accounts?
Nominee accounts must comply with AML and KYC laws, requiring verification of beneficial owners' identities.