When an institution applies for verification on a major trading platform, it must formally agree to and attest to a series of critical declarations. These attestations are a foundational part of the onboarding process, ensuring regulatory compliance and mutual understanding between the platform and the institution.
This article breaks down the key attestations required, explaining what each means and why they are important for institutional customers.
Core Attestations for Institutional Verification
During the application process, the institution (referred to as the "Applicant") must acknowledge, confirm, represent, and warrant the following points.
Agreement to Terms of Service
The Applicant must confirm that they have read, understood, and agreed to be bound by the platform’s Terms of Service. This agreement includes any future modifications or amendments for as long as the institution uses the services.
Accuracy of Provided Information
The Applicant warrants that any information or documentation provided as part of their application—whether submitted previously, currently, or in the future—is true, accurate, correct, and complete. This is a continuous obligation.
Jurisdictional Restrictions
A critical set of attestations concerns the Applicant's legal and operational ties to prohibited jurisdictions.
- Not U.S. Based: The Applicant must attest that it is not registered, organized, incorporated, formed, or established in the United States.
- Principal Place of Business: The Applicant confirms that its principal place of business is not located in the United States. This is defined as the primary location from which its officers, partners, managers, or traders direct, control, and coordinate its activities, including trading and investment strategy.
- Trust Structures: The Applicant confirms it is not a trust governed by U.S. law if a U.S. court can exercise primary supervision over its administration.
Sanctions and Prohibited Entities
The Applicant attests that it does not and will not maintain an account on behalf of, or provide account access to, any person or entity that is:
- Resident in or connected to the United States or a sanctioned jurisdiction (e.g., Cuba, North Korea, Iran, Syria, Crimea, Donetsk People’s Republic, Luhansk People’s Republic).
- Has its principal place of business in the United States or a sanctioned jurisdiction.
- Appears on any official sanctions lists referenced in the platform’s Terms of Service.
This requires the institution to vigilantly monitor its own clients and partners. For a deeper understanding of global compliance standards, you can explore advanced compliance resources.
Ongoing Due Diligence
The Applicant confirms that it has conducted, and will continue to conduct, reasonable due diligence on its activities and operations. This ongoing effort is necessary to support the accuracy of all provided documentation and the statements made in these attestations.
Importance and Implications of These Attestations
These declarations are not mere formalities. They form the legal basis for the relationship between the platform and the institutional customer.
The platform explicitly states that it is entitled to rely on these attestations and the provided documentation when deciding to offer or continue its services. This reliance underscores the critical importance of honesty and accuracy from the Applicant.
Furthermore, the Applicant agrees to a continuous duty of disclosure. They must notify the platform in writing, as soon as reasonably practicable, if any information provided becomes untrue or inaccurate.
Frequently Asked Questions
What is the purpose of these institutional attestations?
These attestations ensure the institution understands and agrees to comply with the platform's rules and global regulatory requirements. They are a risk mitigation tool, protecting both the platform and its users from legal and compliance violations.
What defines a "principal place of business"?
It is the primary location from which the institution's key personnel (officers, partners, managers, traders) direct, control, and coordinate the entity's core activities. This specifically includes trading analysis and strategy development, not just administrative functions.
What happens if the information provided changes or is found to be incorrect?
The institution has a contractual obligation to notify the platform in writing as soon as reasonably possible after any change that renders their prior information incorrect. Failure to do so could result in account suspension or termination.
Are these requirements standard across all trading platforms?
While the core principles of compliance, jurisdiction, and accurate information are universal, the specific list of sanctioned jurisdictions and exact attestation wording can vary between platforms. Always review the requirements of your specific platform carefully.
Why is due diligence mentioned as an ongoing requirement?
Compliance landscapes and an institution's own operations are dynamic. Continuous due diligence is necessary to ensure that the institution's activities remain within the bounds of what was declared, adapting to new regulations, business partnerships, or changes in its own structure.
What if our institution serves clients in multiple jurisdictions?
It is your responsibility to ensure that none of your sub-users or clients fall under the prohibited categories listed, particularly those connected to sanctioned jurisdictions. Robust Know Your Customer (KYC) and due diligence processes are essential for institutional accounts. To ensure you have the right tools for this, review modern compliance solutions.