Know Your Client: Why Your Paymaster Asks So Many Questions

Clients sometimes ask why a paymaster needs so much information before money can move. The short answer is that the law, the firm's bank and the firm's professional duties all require it.

Why it is required

• Bank requirements. U.S. banks must know who is behind the money that passes through their accounts, including attorney trust accounts, under the Bank Secrecy Act and anti-money laundering rules.
• Sanctions. U.S. persons may not deal with anyone on the Treasury Department's OFAC sanctions lists or in sanctioned regions. Every party must be screened.
• Professional duties. A lawyer may not assist a client in conduct the lawyer knows is fraudulent or unlawful.
• Tax reporting. Payments may require IRS forms and, in some cases, information returns.

What you will be asked

• Your identity: full name, date of birth, address and an identification document.
• For companies: who owns and controls the company.
• Your role and the purpose of the transaction.
• Where the funds come from.
• Whether you are a senior foreign political figure or closely related to one.

How your information is protected

The firm's Client Information Sheet is completed in the secure client portal. Access requires a confirmed email, a strong password and a code from an authenticator app. Answers and uploaded files are encrypted on the server, and every sign in, upload and signature is logged. Information is confidential and shared only as the law requires or with your permission.