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A timeless classic in a new way

Yan from Owner.One

81.6% of capital owners do not share details about assets with their family members. They view early disclosure as risky, while understanding that late disclosure is simply impossible. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In the event of an emergency, conveying all necessary details to family members can be challenging or impossible. Many believe that existing methods are either unreliable or cumbersome. However, the solution can be simple: grab a sheet of paper and a black marker. Write down a list of your assets, capital, and their locations. Make several copies of this document. Use a black marker to obscure different parts of the information on each copy (this can also be done digitally in MS Word). To ensure the information cannot be read through the redactions, photocopy these documents again. Distribute the lists to different family members. Now, your family has crucial information that they can use in a critical moment, but they will need to come together to combine the pieces of the puzzle. Risks: this method is not perfect, but is certainly better than having no plan at all. It works best if the family members are in reasonably good relationships with each other.

Expand

Playing by one side’s rules

Yan from Owner.One

42.8% of wealth owners are not aware of KYC risks and issues related to banks’ KYC (Know Your Client) procedures. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. Don’t get complacent, if you pass bank compliance when opening an account. Banks regularly conduct reviews of their clients and send requests for additional documentation. They may ask for statements or recommendation letters. Get ready for it in advance; otherwise, you may not have sufficient time to gather the necessary documents, leading to the refusal of transactions. To stay ahead, request recommendation letters, annual, and semi-annual statements from all banks where you hold accounts every six months. Typically, bank inquiries cover the current and previous year, and recommendation letters are valid for six to twelve months. To save time, create a template that can be sent to all relevant banks. Most banks accept free-form requests, but some may require you to use their specific templates. In such cases, you’ll need to send separate requests.

Expand

Rhino running

Yan from Owner.One

A rhinoceros runs fast and sees poorly, but its weight makes it a problem for anything in its path. Banks and partners don’t listen to you; they evaluate a person based on their digital profile. Services such as World-Check or Lexis Nexis are the sources of this data. These platforms were created to check counterparties for involvement in illegal financial activities. However, in reality, they contain information on millions of people. These services are often associated with scandals and data leaks, unjust categorization of individuals as suspicious, and the inclusion of data from irrelevant sources, yet they continue to be widely used. Do not leave this issue unattended. Request information about yourself regularly, at least every six months. You don't need to have done something wrong; it's enough for the World-Check algorithm to flag you as suspicious, or for someone in your contacts to be linked to questionable transactions. There's also the risk of database errors or incorrect interpretations. World-Check is a black box that significantly impacts your capital and assets, potentially leading to loan refusals, blocked transactions, denied bank accounts, and even revocation of residence permits or citizenship. Bank compliance departments work solely with documents and digital traces, so if you face unexplained refusals or biased treatment, World-Check could be the reason.

Expand

The rearview mirror or the history of your money

Yan from Owner.One

92% of capital founders underestimate the importance of Source of Wealth Essay (SoWE) with a proof of Continuity of Ownership. They consider it to be a document of little importance. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. Recently, banking compliance procedures have become increasingly stringent, and it is likely that they will only get worse in the future. Primarily, they request documents proving the continuity of ownership. (Continuity of ownership refers to the history of the origin of your wealth). The timeframe for these requests has also changed: initially, regulators were interested in information from the past 6 months, then from the past year, and then from the past 3 years. These days, you may be required to provide data from the past 10 years. If you have not yet recovered your data, each day you wait only worsens your situation, as your data becomes outdated while the depth of bank inquiries increases. If you do not start addressing this now, eventually these two trends will intersect, and you will find yourself in an untenable situation. Start by recovering copies of documents from the past three years and then delve deeper. Recovering some documents may be difficult or impossible, but by starting this process now, you will already be ahead of many. * Continuity of ownership - the history of all your assets

Expand

Red button

Yan from Owner.One

93% of wealth owners admit that they have no understanding of how their family will act in the event of force majeure. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In the subway, on trains, and at workplaces, there is always a red button for emergencies. In human life, the variations of unexpected events are much greater. Nevertheless, statistics show that 99.2% of wealthy families do not have a precise action plan for emergencies. Have you thought about what you will do and what plan your family will follow if such an event occurs? To avoid being part of this majority statistic, prepare in advance by developing several future scenarios. Even a simple list of basic actions and assets will prepare you and your family for the most unexpected events. Remember to update the plan every six months. In the event of your sudden absence, the survival of your entire family and the preservation of assets will entirely depend on having clearly formulated and planned actions.

Expand

Ski slopes

Yan from Owner.One

Only 4.02% realize that if their bank requests verification of a frozen transaction – they will have just three days to provide the documents. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. A black slope can be easier with good snow than a blue slope with bad snow. Often, the reasons behind account freezes or bank-canceled transactions are not immediately clear. Regulatory criteria for deeming client transactions suspicious are vague. Sometimes, this judgment is made because a client has a large number of diverse transactions. This can lead to a transaction freeze and a request for additional documentation. To avoid this, separate your bank accounts by transaction types, and ideally, conduct different types of transactions through different banks. This reduces the frequency of regular and unexpected requests and helps you manage and respond to bank inquiries. For example, use separate accounts for dividends, current expenses, bonuses, and investment income. This approach saves time, is convenient, and reduces compliance risks. Of course, dividing assets among multiple accounts and banks may increase the complexity of financial planning. Additionally, if you mistakenly mix up the accounts and conduct an atypical transaction, the regulator will likely send you a request.

Expand

Follow the trail

Yan from Owner.One

Private transactions from $134 000 to $4M, often scrutinized for KYC compliance, are mostly initiated by capital founders with assets between $3M and $99M. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. You’ve sent a payment to another country, and it’s taking a long time to reach its destination — this is a common scenario. People check the status of the payment with the sending bank, not realizing that there can be at least four intermediaries involved in the payment chain. If any bank in this chain holds the payment longer than usual, it’s highly likely that you’ll be required to provide more detailed KYC (Know Your Customer) data next time, even if the payment goes through this time. To be prepared and to track your transactions, you can use services to monitor SWIFT payments. These services track the status of your cross-border transactions in real time and notify you of any delays. You can subscribe to paid versions or use free alternatives available online or through Telegram bots. If you don’t want to spend time on this, you can delegate the task to assistant, who can also monitor the transactions. However, keep in mind the risk of disclosing confidential information, as the data will show either the amount or the purpose of the transaction. Additionally, a major drawback of these services is that they provide data only in real time and do not maintain statistics for individuals.

Expand

The “Alien - Own” strategy: securing your family’s future

Yan from Owner.One

92% of additionally surveyed lawyers claimed that in many cases having detailed information about assets is more important than having documents. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In today’s world, our lives are diversified not only by types of assets, but also by the jurisdictions where these assets are located. Does ownership of an asset give you your own rights and how can we transfer this capital to heirs without causing them headaches? What rules will govern the inheritance of these assets? The simplest solution might be to draft a will for each individual foreign asset located in its respective country. To create this document, you usually don’t need to travel; in most cases, it can be done at a consulate without the other party’s presence. The key is to plan how to transfer this information to your family in the event of an emergency. Keep in mind that inheritance can be a lengthy and costly process, and until it is finalized, your heirs will have limited access to the assets. This poses a risk of improper management, potentially leading to asset loss. Additionally, inheritance may be subject to high taxes in the relevant country, adding to the financial burden.

Expand

A timeless classic in a new way

Yan from Owner.One

81.6% of capital owners do not share details about assets with their family members. They view early disclosure as risky, while understanding that late disclosure is simply impossible. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In the event of an emergency, conveying all necessary details to family members can be challenging or impossible. Many believe that existing methods are either unreliable or cumbersome. However, the solution can be simple: grab a sheet of paper and a black marker. Write down a list of your assets, capital, and their locations. Make several copies of this document. Use a black marker to obscure different parts of the information on each copy (this can also be done digitally in MS Word). To ensure the information cannot be read through the redactions, photocopy these documents again. Distribute the lists to different family members. Now, your family has crucial information that they can use in a critical moment, but they will need to come together to combine the pieces of the puzzle. Risks: this method is not perfect, but is certainly better than having no plan at all. It works best if the family members are in reasonably good relationships with each other.

Expand

Playing by one side’s rules

Yan from Owner.One

42.8% of wealth owners are not aware of KYC risks and issues related to banks’ KYC (Know Your Client) procedures. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. Don’t get complacent, if you pass bank compliance when opening an account. Banks regularly conduct reviews of their clients and send requests for additional documentation. They may ask for statements or recommendation letters. Get ready for it in advance; otherwise, you may not have sufficient time to gather the necessary documents, leading to the refusal of transactions. To stay ahead, request recommendation letters, annual, and semi-annual statements from all banks where you hold accounts every six months. Typically, bank inquiries cover the current and previous year, and recommendation letters are valid for six to twelve months. To save time, create a template that can be sent to all relevant banks. Most banks accept free-form requests, but some may require you to use their specific templates. In such cases, you’ll need to send separate requests.

Expand

Rhino running

Yan from Owner.One

A rhinoceros runs fast and sees poorly, but its weight makes it a problem for anything in its path. Banks and partners don’t listen to you; they evaluate a person based on their digital profile. Services such as World-Check or Lexis Nexis are the sources of this data. These platforms were created to check counterparties for involvement in illegal financial activities. However, in reality, they contain information on millions of people. These services are often associated with scandals and data leaks, unjust categorization of individuals as suspicious, and the inclusion of data from irrelevant sources, yet they continue to be widely used. Do not leave this issue unattended. Request information about yourself regularly, at least every six months. You don't need to have done something wrong; it's enough for the World-Check algorithm to flag you as suspicious, or for someone in your contacts to be linked to questionable transactions. There's also the risk of database errors or incorrect interpretations. World-Check is a black box that significantly impacts your capital and assets, potentially leading to loan refusals, blocked transactions, denied bank accounts, and even revocation of residence permits or citizenship. Bank compliance departments work solely with documents and digital traces, so if you face unexplained refusals or biased treatment, World-Check could be the reason.

Expand

The rearview mirror or the history of your money

Yan from Owner.One

92% of capital founders underestimate the importance of Source of Wealth Essay (SoWE) with a proof of Continuity of Ownership. They consider it to be a document of little importance. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. Recently, banking compliance procedures have become increasingly stringent, and it is likely that they will only get worse in the future. Primarily, they request documents proving the continuity of ownership. (Continuity of ownership refers to the history of the origin of your wealth). The timeframe for these requests has also changed: initially, regulators were interested in information from the past 6 months, then from the past year, and then from the past 3 years. These days, you may be required to provide data from the past 10 years. If you have not yet recovered your data, each day you wait only worsens your situation, as your data becomes outdated while the depth of bank inquiries increases. If you do not start addressing this now, eventually these two trends will intersect, and you will find yourself in an untenable situation. Start by recovering copies of documents from the past three years and then delve deeper. Recovering some documents may be difficult or impossible, but by starting this process now, you will already be ahead of many. * Continuity of ownership - the history of all your assets

Expand

Red button

Yan from Owner.One

93% of wealth owners admit that they have no understanding of how their family will act in the event of force majeure. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In the subway, on trains, and at workplaces, there is always a red button for emergencies. In human life, the variations of unexpected events are much greater. Nevertheless, statistics show that 99.2% of wealthy families do not have a precise action plan for emergencies. Have you thought about what you will do and what plan your family will follow if such an event occurs? To avoid being part of this majority statistic, prepare in advance by developing several future scenarios. Even a simple list of basic actions and assets will prepare you and your family for the most unexpected events. Remember to update the plan every six months. In the event of your sudden absence, the survival of your entire family and the preservation of assets will entirely depend on having clearly formulated and planned actions.

Expand

Ski slopes

Yan from Owner.One

Only 4.02% realize that if their bank requests verification of a frozen transaction – they will have just three days to provide the documents. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. A black slope can be easier with good snow than a blue slope with bad snow. Often, the reasons behind account freezes or bank-canceled transactions are not immediately clear. Regulatory criteria for deeming client transactions suspicious are vague. Sometimes, this judgment is made because a client has a large number of diverse transactions. This can lead to a transaction freeze and a request for additional documentation. To avoid this, separate your bank accounts by transaction types, and ideally, conduct different types of transactions through different banks. This reduces the frequency of regular and unexpected requests and helps you manage and respond to bank inquiries. For example, use separate accounts for dividends, current expenses, bonuses, and investment income. This approach saves time, is convenient, and reduces compliance risks. Of course, dividing assets among multiple accounts and banks may increase the complexity of financial planning. Additionally, if you mistakenly mix up the accounts and conduct an atypical transaction, the regulator will likely send you a request.

Expand

Follow the trail

Yan from Owner.One

Private transactions from $134 000 to $4M, often scrutinized for KYC compliance, are mostly initiated by capital founders with assets between $3M and $99M. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. You’ve sent a payment to another country, and it’s taking a long time to reach its destination — this is a common scenario. People check the status of the payment with the sending bank, not realizing that there can be at least four intermediaries involved in the payment chain. If any bank in this chain holds the payment longer than usual, it’s highly likely that you’ll be required to provide more detailed KYC (Know Your Customer) data next time, even if the payment goes through this time. To be prepared and to track your transactions, you can use services to monitor SWIFT payments. These services track the status of your cross-border transactions in real time and notify you of any delays. You can subscribe to paid versions or use free alternatives available online or through Telegram bots. If you don’t want to spend time on this, you can delegate the task to assistant, who can also monitor the transactions. However, keep in mind the risk of disclosing confidential information, as the data will show either the amount or the purpose of the transaction. Additionally, a major drawback of these services is that they provide data only in real time and do not maintain statistics for individuals.

Expand

The “Alien - Own” strategy: securing your family’s future

Yan from Owner.One

92% of additionally surveyed lawyers claimed that in many cases having detailed information about assets is more important than having documents. It is based on 'Penguin Analytics, research of 13 500 respondents from 18 countries, with Net Worth from $3 million to $99 million. In today’s world, our lives are diversified not only by types of assets, but also by the jurisdictions where these assets are located. Does ownership of an asset give you your own rights and how can we transfer this capital to heirs without causing them headaches? What rules will govern the inheritance of these assets? The simplest solution might be to draft a will for each individual foreign asset located in its respective country. To create this document, you usually don’t need to travel; in most cases, it can be done at a consulate without the other party’s presence. The key is to plan how to transfer this information to your family in the event of an emergency. Keep in mind that inheritance can be a lengthy and costly process, and until it is finalized, your heirs will have limited access to the assets. This poses a risk of improper management, potentially leading to asset loss. Additionally, inheritance may be subject to high taxes in the relevant country, adding to the financial burden.

Expand

Yan’s Notes

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True Story

Analytics

How it works

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CLIENTS ONLY

The Great Wealth Transfer: Risks, Challenges, and Opportunities for Asset Preservation

Image

The great intergenerational wealth transfer has already begun. It will be the largest in history. Experts expect families and others to receive more than $72.6 trillion from capital founders by 2045. What are the key risks, and how to manage them?
 

Families with a net worth of $3M–$99M are in the most vulnerable position. When it comes to the transfer of assets and capital, they account for up to 75% of all losses. 

The Owner.One research, referred to as the Penguin Analytics Report, details the reasons behind this. 13,500 capital founders from 18 countries took part in it.

Drawing from the report, the article offers key insights into:

  • Asset and capital transfer
  • Ownership continuity
  • Know Your Customer (KYC) procedures
  • The use of digital technology to address these challenges.Wealth Owners: Ready to Lose Up to 50% of Their Fortune

The study shows that 23.7% of capital founders are prepared to give up to 25% of their wealth. They are ready to accept the loss in exchange for a guarantee that the rest will remain within their family's control. 11.8% are willing to lose up to 50% for the same guarantee.

Only 11.9% of them recognize that, in the future, their children will need to complete KYC procedures for both themselves and their parents. This requirement is crucial because it ensures family assets and capital are documented from their origin, starting with the founding member.

Less than 5% of the founders know the consequences of their inaction. It shifts the wealth transfer problem to their family and children. They will not have the necessary tools to tackle the related challenges and obstacles associated with the task.
 

Asset Information Storage: Insecure and Insufficient

In 81% of cases, capital owners personally handle the record-keeping and storage of asset information. They allocate their leftover time to this task

However, the overwhelming majority opt for insecure methods to store and update their asset data. 97.3% of them make these unreliable choices.

Only 17.5% of respondents know that capital founders lose up to one-sixth of their assets data each year. This data loss is often difficult or impossible to recover. The chances for family members to retrieve these records are even slimmer.

Only 7% of capital founders and 7.8% of their heirs get that, in a force majeure event, they usually have a 3-6 month window to get assets in most countries. Without detailed asset data and attributes, heirs can only access the most available assets. These are often called the 'low-hanging fruits'.
 

Are Losses Inevitable?

79.4% of capital founders doubt their family members. They assume they can't understand info about assets and capital.

48% of wealth owners think that their family won't be able to take possession of capital and assets. 23.8% concede that their heirs might only partially succeed in it.

Only 5% of them grasp this. Experts view a net worth of $3M to $99M as wealth that will not last beyond one generation. This perspective comes from observing that in 69% of cases, a family's lifestyle gets worse after the wealth transfer.
 

Unforeseen Risks of Crypto Assets

87% of respondents are unaware that recovering crypto assets becomes impossible if the basic data related to the asset gets lost.

As a result, 23.7% of all crypto assets on the market lack identified owners. Merely 9.3% of survey participants know about this issue.

Crypto payment services report that only 7% of clients express concern about the risk of disrupted ownership continuity before finalizing a transaction.
 

Low Trust Level for Third Parties

89.1% of respondents have doubts about trusted individuals and professionals. The founders question if they will do tasks well when the time comes. They question if they will do them in the best way. 63.3% are entirely uncertain about this.

In the surveyed target group, family trusts have a market penetration of 0.4%, while family offices reach 0.7%.

Only 7.8% of heirs are aware that attorneys are 77.6% more likely to exhibit unscrupulous behavior towards successors than towards capital founders.
 

Data Gaps Lead to Major Losses

Only 2% of survey participants know that, on average, up to 31% of family wealth is lost during the transfer. The primary reason is the lack of comprehensive asset data.

The most eagerly anticipated solution to wealth transfer challenges involves developing digital solutions. These aim to cut intermediaries and human-related risks by leveraging sophisticated algorithms.

71.4% of wealth owners are open to relying on a third party, provided it operates without human involvement. Currently, no products or services offer this capability.
 

Download Penguin Analytics

Dive into the comprehensive findings of the Owner.One research. It offers deeper insights and conclusions.

This report is a chance to reflect. You can compare against similar individuals. Then, you can make well-informed decisions. These decisions will protect both your assets and your family.

You can download the full version of the report via the link.


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