Home Wealth Management Why good KYC is a pure defence towards monetary gaslighting

Why good KYC is a pure defence towards monetary gaslighting

Why good KYC is a pure defence towards monetary gaslighting


It carried out a survey of 121 victims and survivors of financial abuse – the place the abuser “is ready to achieve full management over the sufferer’s funds by impeding the flexibility of the sufferer to acquire, use, and keep financial assets” – in the course of the COVID-19 pandemic.

Amongst different statistics, it discovered 93% of victims have had their paycheques, monetary assist cheques, tax refunds, and incapacity or different help funds taken away by their abusers. Eighty per cent agreed that in COVID-19, their present/ex-partner displayed extra controlling, manipulative, and coercive behaviours pertaining to their funds and financial stability. One other 87% stated they’ve had their cash stolen from their wallets, purses, or financial institution accounts.

Monetary gaslighting can occur to anybody in a dedicated relationship, however Shipley-Strickland sees a number of attainable the explanation why it’s extra possible amongst girls. At her observe, she’s discovered girls are typically much less assured of their numerical abilities. She additionally factors to the standard division between blue jobs and pink jobs, with extra girls tending to remain at residence as males do paid work.

In line with Sara McCullough, monetary planner and proprietor of WD Improvement, it’s widespread for advisors working with a married shopper to search out that one accomplice within the relationship handles the “cash” facet of issues. The place it turns right into a crimson flag, nevertheless, is when a accomplice stonewalls the advisor from assembly with their precise shopper, which might forestall them from working of their shopper’s curiosity.

“As an trade, our relationship can typically be extra with one accomplice than the opposite. And that is tremendous,” McCullough (pictured above, proper) says. “However typically, we let the connection take precedence over KYC. … There comes a time the place that concept of know-your-client actually means it’s important to know your shopper, not know what your shopper’s accomplice says about your shopper.”



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