AquaFutures KYC/AML Policies: Verification Requirements Explained

Written by Paul

Published on

January 14, 2026

KYC (Know Your Customer) and AML (Anti-Money Laundering) verification requires all traders to submit government-issued ID, proof of address, and sometimes selfie verification before withdrawing profits—complying with U.S. financial regulations (Bank Secrecy Act, FinCEN requirements) and international standards (FATF guidelines). Initial verification typically occurs before first payout, though some firms verify at account creation. Documents must be: current (not expired), legible (clear photos/scans), matching the name on your trading account exactly.

The verification exists to prevent: money laundering through prop accounts, terrorist financing, fraud and identity theft, tax evasion, and sanctions violations. Failed verification blocks all withdrawals until resolved—you can trade and profit, but can't access funds. Processing takes 24-72 hours for standard cases, 5-10 days if documents are unclear or require additional verification. Most traders pass easily by submitting valid driver's license + utility bill, but international traders may face additional scrutiny depending on country risk ratings.

I'm breaking down what documents are required, how to submit them correctly, common rejection reasons, processing timelines, enhanced due diligence for high-risk countries, privacy concerns, what happens if you can't verify, and how verification affects withdrawal timing.

Quick heads-up: This article is based on my real experience with Aquafutures and the info available when I published/updated this. Things change in prop trading — rules, payouts, promos, all of it.

For the absolute latest, check Aquafutures´s website or their faq page.

What KYC/AML Means

KYC (Know Your Customer):

Verifying your identity to ensure you're a real person (not fake account, stolen identity, or sanctioned individual).

AML (Anti-Money Laundering):

Preventing use of financial services (like prop trading) to "clean" illegally obtained money through legitimate-appearing transactions.

Legal framework:

Bank Secrecy Act (BSA): Requires financial institutions to verify customer identities
FinCEN (Financial Crimes Enforcement Network): Enforces AML compliance in U.S.
FATF (Financial Action Task Force): International standards for AML/CFT (Counter-Financing of Terrorism)
Patriot Act: Enhanced identification requirements post-9/11

Why prop firms must comply:

Prop firms handle large sums of money. Regulators require verification to ensure money isn't:

Proceeds from drug trafficking
Terrorist financing
Tax evasion
Fraud proceeds

For regulatory compliance, see the evaluation rules guide.

When Verification Happens

Scenario 1: Before first withdrawal

Most common timing:

You pass evaluation
Request first payout
AquaFutures: "Please complete KYC verification to process withdrawal"
You submit documents
24-72 hours review
Payout approved

Scenario 2: At account creation

Some firms verify upfront:

You sign up for evaluation
Before starting: "Please verify identity"
Submit documents
Once approved, can start trading

Scenario 3: Random audit

Rare but possible:

You've been funded and withdrawn before
Firm conducts periodic audits
"Please re-verify your identity"
Submit updated documents

Scenario 4: Suspicious activity

Triggered review:

Unusual trading patterns
Large withdrawal requests ($10K+)
Account sharing concerns
Enhanced due diligence required

For withdrawal details, see the minimum withdrawal guide.

Required Documents: Standard Verification

Document 1: Government-Issued Photo ID

Accepted:

✅ Driver's license (U.S. or international)

✅ Passport (any country)

✅ National ID card (EU, other countries)

✅ State ID card (non-driver ID)

Not accepted:

❌ Student ID

❌ Work badge

❌ Library card

❌ Expired ID (must be current)

Requirements:

Full name visible
Photo clearly shows face
Expiration date in future (not expired)
All four corners of ID visible
Readable text (no blur)

Document 2: Proof of Address

Accepted:

✅ Utility bill (electric, gas, water) from last 3 months

✅ Bank statement from last 3 months

✅ Credit card statement from last 3 months

✅ Government correspondence (tax documents, DMV)

✅ Lease agreement (current)

Not accepted:

❌ Cell phone bill (easily faked)

❌ Old statements (>3 months)

❌ P.O. Box address (need residential)

❌ Screenshots (must be original document)

Requirements:

Your full name matching ID
Your current address
Date within last 3 months
Issuing organization visible (utility company, bank name)

Document 3: Selfie Verification (Sometimes Required)

Method:

Take selfie holding your ID next to your face.

Requirements:

Face clearly visible
ID readable
Both face and ID in same photo
No filters, good lighting
Current photo (not old selfie)

Purpose: Prevents stolen ID usage. Proves person submitting documents = person on ID.

How to Submit Documents Correctly

Step 1: Use good lighting

Take photos near window (natural light) or under bright lamp
Avoid shadows on document
Don't use flash (creates glare)

Step 2: Ensure clarity

All text readable
No blur
Photo focused
High resolution (not pixelated)

Step 3: Show full document

All four corners visible
Don't crop edges
Include entire ID front (and back if requested)

Step 4: File format

Accepted:

✅ JPEG/JPG

✅ PNG

✅ PDF (for utility bills)

Not accepted:

❌ HEIC (iPhone default—convert to JPG)

❌ TIFF

❌ Word documents

Step 5: File size

Under 10MB per file
If too large, compress or reduce resolution slightly

Step 6: Upload through official portal

AquaFutures sends secure upload link
Don't email documents (security risk)
Use official KYC portal only

For customer support, see the support guide.

Common Rejection Reasons

Rejection 1: Expired ID

Problem: Driver's license expired 2 months ago

Fix: Renew ID, submit updated version

Rejection 2: Name mismatch

Problem:

ID shows: "Robert Smith"
Trading account registered as: "Bob Smith"

Fix: Update trading account to exact legal name, or provide document explaining nickname

Rejection 3: Blurry photos

Problem: Can't read ID number or address

Fix: Retake photos with better focus and lighting

Rejection 4: Old utility bill

Problem: Bank statement from 5 months ago

Fix: Submit statement from last 3 months

Rejection 5: Address mismatch

Problem:

ID shows: 123 Main St, New York
Utility bill shows: 456 Oak Ave, New York

Fix: Provide both IDs if recently moved, or submit lease agreement for current address

Rejection 6: Cropped document

Problem: Half of ID missing, can't see expiration date

Fix: Resubmit with full document visible

Rejection 7: Selfie doesn't match ID

Problem: Person in selfie doesn't look like person on ID (different face, lighting, angle)

Fix: Retake selfie with better lighting, clearer angle, hold ID closer

Processing Times

Scenario	Processing Time	Notes
Standard verification (U.S.)	24-72 hours	Clear documents, no issues
Standard verification (International)	3-7 days	Additional checks for non-U.S. traders
Resubmission (after rejection)	24-48 hours	Faster since initial review done
Enhanced due diligence	7-14 days	High-risk country, large withdrawal, suspicious activity
Weekend submission	+2 days	Processing starts Monday

Key insight: Submit documents Monday-Wednesday for fastest processing. Weekend submissions wait until Monday.

Enhanced Due Diligence (EDD)

When EDD is required:

Scenario 1: High-risk country

Countries on FATF watchlist or sanctions lists:

North Korea, Iran, Syria (sanctioned)
Afghanistan, Myanmar, Pakistan (high-risk)
Others per FATF guidelines

Additional requirements:

Extra documentation (proof of income, source of funds)
Video verification call
Compliance interview

Scenario 2: Large withdrawals

Threshold (varies by firm):

$10,000+ single withdrawal
$25,000+ cumulative withdrawals in 30 days

Additional requirements:

Explain source of trading capital
Provide additional address verification
Enhanced monitoring of account activity

Scenario 3: Suspicious activity flags

Red flags:

Rapid account transfers (multiple accounts, quick turnaround)
Coordinated trading patterns
Login from high-risk countries
Withdrawal to third-party accounts (not your bank)

Additional requirements:

Detailed explanation of trading activity
Proof account is yours (not account sharing)
Verification of withdrawal destination

Scenario 4: Politically Exposed Person (PEP)

Who qualifies:

Government officials (current or former)
Politicians
Senior military officers
Close family of above

Additional requirements:

Declaration of PEP status
Source of wealth documentation
Ongoing monitoring

EDD processing: 7-14 days minimum, possibly longer for complex cases.

Privacy and Data Security

What AquaFutures collects:

Full legal name
Date of birth
Residential address
Government ID numbers
Biometric data (selfie)

How it's stored:

Encrypted databases
Secure servers (AWS, Azure)
Access limited to compliance team
Not shared with marketing/sales

Who sees your data:

✅ Compliance officers: For verification purposes

✅ Regulators: If audited by FinCEN, CFTC

✅ Law enforcement: If subpoenaed

❌ Third parties: Not sold or shared

Your rights:

Request copy of data (GDPR, CCPA)
Request deletion (with account closure)
Opt-out of marketing (doesn't affect KYC data)

Data retention:

Active accounts: Retained indefinitely
Closed accounts: 5-7 years (regulatory requirement)

For account closure, see the breach consequences guide.

What If You Can't Verify?

Reason 1: No government ID

Problem: You don't have driver's license, passport, or national ID

Solution: Obtain one of these before trading prop firms (required by law)

Reason 2: Address mismatch

Problem: You recently moved, ID shows old address, no utility bill yet at new address

Solution:

Provide lease agreement for new address
Provide bank statement showing new address
Provide government correspondence (DMV, IRS) to new address

Reason 3: Living with family (no utility bill in your name)

Problem: Parents pay utilities, all bills in their name

Solution:

Bank statement (shows your name + address)
Government-issued mail (IRS, SSA, DMV)
Notarized letter from parent (stating you live there)

Reason 4: P.O. Box only

Problem: You use P.O. Box, no residential address

Solution: Firms require residential address (compliance regulation). Must provide actual home address.

Reason 5: Privacy concerns

Problem: You're uncomfortable sharing ID/address

Solution: Unfortunately, KYC is mandatory. If you refuse verification:

Can't withdraw funds (profits stuck in account)
Eventually account terminated
No alternative (all prop firms require KYC)

If verification fails repeatedly:

Funds remain locked
Firm may return evaluation fees
Account closed
Try different prop firm (same requirements apply)

International Traders: Additional Considerations

Consideration 1: Language barriers

Problem: Documents not in English

Solution: Provide certified translation alongside original

Consideration 2: ID types

Different countries, different IDs:

EU: National ID cards (accepted)
UK: Passport (most common)
Latin America: Cédula (national ID, accepted)
Asia: Various national IDs (accepted)

All must be government-issued with photo.

Consideration 3: Address formats

Non-U.S. address formats vary:

Include province/prefecture
Include postal code format
Some countries don't use street numbers (descriptive addresses)

Firm must be able to verify address location. If unusual format, include note explaining.

Consideration 4: Banking restrictions

Some countries have capital controls:

China (restricts outbound transfers)
India (requires RBI approval)
Argentina (currency controls)

May require additional documentation for withdrawal.

For withdrawal methods, see the withdrawal methods guide.

Tax Implications of KYC

U.S. traders:

AquaFutures reports earnings to IRS (1099 form)
Based on verified name and SSN/TIN
You're responsible for paying taxes on profits

Non-U.S. traders:

May receive 1099 if trading on U.S.-based platform
Subject to U.S. tax treaty provisions
Consult tax professional in your country

W-8BEN form (non-U.S. traders):

If you're non-U.S. resident, you may need to complete W-8BEN (Certificate of Foreign Status):

Certifies you're not U.S. taxpayer
May reduce withholding tax (depends on treaty)
Valid for 3 years

KYC enables tax compliance. Without verification, firm can't issue proper tax forms.

How Verification Affects Withdrawal Timing

Timeline example (first withdrawal):

Day 1: Request withdrawal ($500)

Day 2: Receive KYC request email

Day 3-5: Submit documents, wait for review

Day 6: Verification approved

Day 7-9: Payout processed

Total: 9 days (first withdrawal)

Timeline (subsequent withdrawals):

Day 1: Request withdrawal ($1,000)

Day 2-4: Payout processed (KYC already done)

Total: 3-4 days

Lesson: Get verified ASAP to avoid delays on first payout.

For payout timing, see the payout guarantee guide.

Final Thoughts: Verification Is Mandatory and Universal

Every legitimate prop firm requires KYC/AML verification.

Why:

Federal law (U.S. firms)
International standards (FATF)
Prevents crime (money laundering, fraud)

If a firm doesn't require verification:

🚩 Red flag (possibly unregulated, high fraud risk)

The process is straightforward:

✅ Submit valid government ID

✅ Submit proof of address (last 3 months)

✅ Sometimes selfie verification

✅ Wait 24-72 hours

✅ Start withdrawing

99% of traders verify successfully by submitting:

Current driver's license
Recent utility bill or bank statement
Clear, legible photos

Don't let KYC delay your first payout. Prepare documents in advance, submit as soon as requested.

Verification = access to your profits. It's worth the minor hassle.

Frequently Asked Questions

What is KYC/AML verification?

KYC (Know Your Customer): Verifying your identity with government-issued ID to ensure you're a real person, not fake/stolen identity. AML (Anti-Money Laundering): Preventing use of prop accounts to "clean" illegally obtained money. Required by Bank Secrecy Act, FinCEN, and FATF guidelines. All prop firms must verify identity before allowing withdrawals to comply with financial regulations.

What documents do you need for verification?

Three documents: (1) Government-issued photo ID (driver's license, passport, national ID—must be current, not expired), (2) Proof of address from last 3 months (utility bill, bank statement, lease agreement—must match name on ID), (3) Selfie holding ID next to face (sometimes required—proves person submitting = person on ID). Submit clear, legible photos/scans with all corners visible.

How long does KYC verification take?

U.S. traders: 24-72 hours standard verification. International traders: 3-7 days. Enhanced due diligence (high-risk countries, large withdrawals, suspicious activity): 7-14 days. Resubmission after rejection: 24-48 hours. Weekend submissions add 2 days (processing starts Monday). Submit Monday-Wednesday for fastest processing.

When do you need to verify?

Most common: Before first withdrawal (pass evaluation, request payout, receive KYC request, submit documents, wait 24-72 hours, payout approved). Some firms: At account creation (verify before trading starts). Rare: Random audit (periodic re-verification), suspicious activity (enhanced due diligence triggered). Can't withdraw without verification—prepare documents in advance.

What happens if verification fails?

Funds remain locked (can trade and profit, but can't withdraw). Common rejections: Expired ID, name mismatch, blurry photos, old utility bill (>3 months), address mismatch, cropped documents. Fix: Resubmit correct documents, usually approved within 24-48 hours. Repeated failures: Funds stay locked, firm may return evaluation fees and close account. All prop firms require verification—no alternative.

Can you withdraw without KYC?

No—verification is mandatory by law. Without KYC: Can trade and build profits, but can't withdraw any money, funds remain locked until verified, eventually account closed if never verified. Every legitimate prop firm requires KYC. If a firm doesn't require verification, it's a red flag (possibly unregulated, high fraud risk).

What if you don't have a utility bill in your name?

Alternatives: Bank statement showing your name + address, government-issued mail (IRS, DMV, SSA), lease agreement (current), notarized letter from parent/roommate (stating you live there). Living with family with bills in parents' name is common—bank statement usually sufficient. P.O. Box not accepted—need residential address.

Do international traders face additional verification?

Yes. Processing: 3-7 days (vs 24-72 hours for U.S.). Additional checks: Country risk assessment, document translation if not in English, various ID types (EU national ID, UK passport, Latin America cédula all accepted). High-risk countries: Enhanced due diligence (7-14 days), extra documentation (proof of income, source of funds), video verification call. All government-issued photo IDs with current address proof accepted.