High Net Worth Individuals (HNWIs)
High Net Worth Individuals (HNWIs) are affluent persons possessing liquid assets above $1 million. They represent a significant segment of the consumer base for luxury goods, high-end financial services, and exclusive investment opportunities.
Very High Net Worth Individuals (VHNWIs) elevate this wealth threshold with liquid assets ranging between $5 million and $30 million. Their financial affairs often include complex investment portfolios and may span international borders, necessitating sophisticated wealth management services.
Ultra High Net Worth Individuals (UHNWIs) stand at the pinnacle of personal wealth, commanding in excess of $30 million in liquid assets. UHNWIs typically engage in large-scale investments and philanthropic endeavors and may influence economic trends with their substantial financial power.
With great wealth comes increased risk, particularly in the context of Money Laundering and Terrorist Financing. The sheer volume and complexity of assets managed by HNWIs, VHNWIs, and UHNWIs make these relationships inherently susceptible to financial crime.
Obliged entities, such as banks and financial institutions, should implement Enhanced Due Diligence (EDD) to mitigate these risks. EDD is a stringent compliance process that involves a deeper examination of the individual’s source of wealth, transaction patterns, and overall financial behavior. It is a critical step in ensuring that the vast sums of money managed are not derived from or channeled towards illicit activities, thus protecting the integrity of the global financial system.
- Anti-money laundering: Council and Parliament strike deal on stricter rules https://www.consilium.europa.eu/en/press/press-releases/2024/01/18/anti-money-laundering-council-and-parliament-strike-deal-on-stricter-rules/