Compliance
(Trade Folder)™ does not tolerate money laundering and supports the fight against money launderers. (Trade Folder)™ follows the guidelines set by the UK's Joint Laundering Steering Group. The UK is a full member of the Financial Action Task Force (FATF), the intergovernmental body whose purpose is to combat money laundering and terrorist financing.
(Trade Folder)™ now has policies in place to deter people from laundering money. These policies include:
- Ensuring clients have valid proof of identification
- Maintaining records of identification information
- Determining that clients are not known or suspected terrorists by checking their names against lists of known or suspected terrorists
- Informing clients that the information they provide may be used to verify their identity
- Closely following clients' money transactions
Money Laundering occurs when funds from an illegal/criminal activity are moved through the financial system in such a way as to make it appear that the funds have come from legitimate sources.
Money Laundering usually follows three stages:
- Firstly, cash or cash equivalents are placed into the financial system
- Secondly, money is transferred or moved to other accounts (e.g. futures accounts) through a series of financial transactions designed to obscure the origin of the money (e.g. executing trades with little or no financial risk or transferring account balances to other accounts)
- Finally, the funds are re-introduced into the economy so that the funds appear to have come from legitimate sources (e.g. closing a future account and transferring the funds to a bank account).
Trading accounts are one vehicle that can be used to launder illicit funds or to hide the true owner of the funds. A trading account can be used to execute financial transactions that help obscure the origins of the funds.
(Trade Folder)™ directs funds withdrawals back to the original source of remittance, as a preventative measure.
International Anti-Money Laundering requires financial services institutions to be aware of potential money laundering abuses that could occur in a customer account and implement a compliance program to deter, detect and report potential suspicious activity.
For questions and/or comments regarding these guidelines, please contact us at [email protected]