Which statement describes an Individual Account?

Which statement describes an Individual Account?

• A. Opened by a natural person and owned by a natural person
• B. Opened by an entity to conduct business
• C. Guardian manages funds for ward of the state or legally incapacitated person
• D. It is a custodial account

Answer: (A)

An Individual Account is defined by ownership and control by a single natural person. This means the account is opened by a natural person and is owned by that same person—personal, not corporate or fiduciary. In AML terms, this is the straightforward case of a personal customer with individual ownership. The other descriptions point to different types of accounts. An account opened by an entity to conduct business is a business or corporate account, not an individual one. A guardian managing funds for a ward or a legally incapacitated person describes a guardianship arrangement, a fiduciary setup rather than personal ownership. A custodial account is held by a custodian for a beneficiary, again not owned by the individual who opened it.

An Individual Account is defined by ownership and control by a single natural person. This means the account is opened by a natural person and is owned by that same person—personal, not corporate or fiduciary. In AML terms, this is the straightforward case of a personal customer with individual ownership.

The other descriptions point to different types of accounts. An account opened by an entity to conduct business is a business or corporate account, not an individual one. A guardian managing funds for a ward or a legally incapacitated person describes a guardianship arrangement, a fiduciary setup rather than personal ownership. A custodial account is held by a custodian for a beneficiary, again not owned by the individual who opened it.