Why trading not permitted?

Question

I just opened an etrade cash account, when I placed buy orders, it always showed an error message:

--- Trading not permitted in this account due to non-compliance with Anti-Money Laundering Regulations.

anybody knows why I can't place buy orders? thanks.

Answer 1

Shouldn't you be using a "brokerage" account?  

If that account does allow stock trading, have the funds settled yet?    A brokerage needs to know they can lock in the funds for a purchase, lest someone buy stock with funds they don't have, and then skip out on the broker if the stock drops after they buy.

Answer 2

That really does not sound good.  I would contact etrade immediately.

Answer 3

My guess is that you still have to fill out some form.

Answer 4

If you "just opened" a cash only trading account and deposited a check to fund the account, you will not be able to trade until the funds have cleared.  Depending on the amount of deposit, the broker may ask you what was the source of the funds.  If when your account was entered into the computer, the fact was omitted, that may account for the transaction not being accepted because the dumb machine has to be told the money is not being laundered.  Just call or email the broker and they should be able to address that problem in about two minutes!

Answer 5

All the above responses are guesses, and none of them factual.  

Your name, or a name similar to yours is on the Government list produced by OFAC, (The Office of Foreign Asset Control) somewhere in your past you name, or a name similar to yours was listed as using a foreign bank that was not acceptable by the US Government, or there was questionable money movements in a bank and/or brokerage account.

This list is similar to the no fly list used by by TAA, so you will have to try to get your name taken from the list or if it is there send a letter to the Office of Foreign Asset Control for what has to be done to have your name deleted

You could call the Compliance officer at E-Trade, for all the details. It wouldn't do you any good to open an account with another broker/dealer since they all use the same reporting service,