Ask Reggi Your Question Now

Reggi is the free generative AI assistance for regulatory compliance
Ask a Question

Can I collect financial information from participants in Washington? What are the requirements?

Yes, you can collect financial information from participants in Washington, but you must comply with certain requirements depending on the context in which you are collecting the information. Here are the requirements:

Requirements for Collecting Financial Information

Charitable Organizations and Commercial Fund-Raisers

If you are a charitable organization or commercial fund-raiser, you must register with the secretary prior to conducting any solicitations. Failure to register as required by this chapter is a violation of this chapter. Information provided to the secretary pursuant to this chapter is a public record except as provided by law. Social security numbers and financial account numbers are not public information. Registration must not be considered or be represented as an endorsement by the secretary or the state of Washington [WARC 19.09.065][2.1].

Crowdfunding Exemption

If you are collecting financial information in connection with a crowdfunding exemption in Washington, you must file a properly completed Washington Crowdfunding Form and furnish prospective investors with the most recent Washington Crowdfunding Form declared exempt by the director, including all required exhibits thereto, at a reasonable time prior to the sale of securities [WAAC 460-99C-040][1.2].

Public Accounts of Governmental Entities

If you are collecting financial information related to public accounts of governmental entities held by financial institutions, you must file a report with the commission that includes the name and address of each financial institution in which the treasurer or a member of the county finance committee held an office, directorship, partnership interest, or ownership interest which holds or has held during the reporting period public accounts of the governmental entity for which the treasurer is responsible, the aggregate sum of time and demand deposits held in each such financial institution on December 31, and the highest balance held at any time during such reporting period [WARC 42.17A.570][3.1].

Commercial Fund-Raisers

If you are a commercial fund-raiser collecting financial information, you must submit an application for registration and renewal on the form approved by the secretary and must contain certain information, including the name, address, and telephone number of the commercial fund-raising entity, the name(s), address(es), and telephone number(s) of the owner(s) and principal officer(s) of the commercial fund-raising entity, and a solicitation report of the commercial fund-raising entity for the preceding, completed accounting year [WARC 19.09.097][2.4].

Fund-Raising Activities

If you are collecting financial information related to fund-raising activities, you must comply with certain standards, including that the activity consists of one or more of the following: a sale of goods or services sold at a reasonable approximation of the fair market value of each item or service, a gambling operation that is licensed, conducted, or operated in accordance with the provisions of chapter 9.46 RCW, a gathering where food and beverages are purchased and the price of admission or the per person charge for the food and beverages is no more than twenty-five dollars, a concert, dance, theater performance, or similar entertainment event and the price of admission is no more than twenty-five dollars, or an auction or similar sale for which the total fair market value or cost of items donated by any person is no more than fifty dollars [WARC 42.17A.230][3.2].

Conclusion

You can collect financial information from participants in Washington, but you must comply with certain requirements depending on the context in which you are collecting the information.

Source(s):
Jurisdiction

Washington