Money laundering is the process by which individuals attempt to conceal the origin and ownership of proceeds of illegal activity. Generally, money laundering involves any financial using funds derived from criminal activity; or conducted to facilitate or conceal criminal activity.
Money laundering activity is highly regulated by global and international legislation therefor any company is strongly advised to implement aml code of practice, to avoid legal procedures and sanctions in the future.
The risk of money laundering by criminal elements through the company is the exploitation of the deposit/withdraws procedures made available by the company, and the opportunity to present to law enforcement and tax entities that the source of the funds coming from the company, is the profit obtained under legal circumstances.For example, if the user deposits funds from the crime into the company's account, then users with access rights can withdraw these funds and transfer themto another bank account and report it as profit.This will interrupt the flow of funds from the deposit entity to the withdrawal entity.Criminals may use this option to transfer funds to places where law enforcement agencies have failed to detect and conceal the true source of funds.The above situation also applies to cases such as transfer of funds between different entities.
To avoid such abuse of the company, for that, the company must implement KYC (“Know Your Client“) procedures.
If necessary, you need to provide proof related to personal information
The user promises that his funds are legal and safe own funds, and there are no drug crimes, organized crimes of the underworld nature, terrorist crimes, smuggling crimes, corruption and bribery crimes, crimes of disrupting financial management order, crimes of financial fraud, theft,embezzlement and misappropriation of company proceeds and other proceeds of crimes and their proceeds, there is no act of entertainment and other acts through the company's platform to cover up the illegal sources of funds and obtain illegal proceeds.
The user promises not to use its entertainment funds and proceeds on the company's platform for any anti-state, terrorist financing and other illegal criminal activities, or use the funds and proceeds to pay, fund or disguise to help anti-state and terrorist organizations for illegal activities.
The user promises that he is the legal owner of the funds and has the full right to control the funds deposited in the company's account
To prevent money laundering organizations from conducting money laundering through our channels, we will take the following measures:
Monitor the cyrpto currency (such as PHPT) from the blacklist, and freeze the operation account until the user submits the relevant certificate to apply for unfreezing, and the withdrawal must be transferred to the same account of the previous source address of the money deposit (to prevent transfer between different accounts to achieve money laundering operation).If the original account is no longer available, the funds can be transferred to different accounts of the same entity (and you need to show a personal data to prove the ownership of the new account), and the same amount, and according to the original deposit address source transferto the same address.
If it is found in the process of accessing funds on the company's platform or has been confirmed in a third-party financial or interbank organization, the user's involvement in money laundering crimes, funds or other property originated from terrorist organizations, terrorists, persons engaged in terrorist financing activities, and other illegal crimes;when funds or other forms of property have been used or will be used for terrorist financing, terrorist activities and other illegal criminal activities, the company will immediately stop all operations that have occurred or are happening on the platform of the user, and deposit them on the company's platform.Measures to seal up accounts, freeze funds, and report user violations to the designated financial supervision department and transfer transaction violation information and evidence materials to judicial authorities as appropriate.Since the user fails to comply with the requirements of relevant laws and regulations and violates the related guarantee commitments made in this document, the company or other third parties suffer corresponding losses. The user shall bear full liability for compensation and bear the corresponding legal consequences alone.
When there is suspicious transaction or large-value transaction in the process of user funds operation, the company's platform has the right to immediately inquire the user in a reasonable manner, request the user to make a reasonable explanation of the above funds, and may require the user to provide relevant data proof according to the situation.The user shall not refuse to explain or explain these abnormal trading behaviors for any reason.
If the customer is a private person (natural person) the following documents must be collected:
Full name details.
Id number, and/or passport number (original or certified copies).
Proof of residency- copy of utility bill.
Swift confirmation of the bank transfer. The information of the bank account showed on the swift must be identical to (a) and (b) above. Otherwise, the deposit must be returned to the same bank account it came from, immediately, without crediting the trading account.
Withdrawals must be made to the same bank account the money was deposited from (to prevent money transfer between different entities’ bank accounts, through the company), and in the same currency (to prevent currency changes through the company).
If the original account is no longer available, funds may be transferred to a different account of the same entity (you will need to get a copy of a check or other instrument proving the new account ownership), in the same currency and into the same country the original deposit was made from.
If the customer is a corporation (legal entity) the following documents must be collected:
All statutory documents (certificate of incorporation, memorandum and articles of association), and amendments to them (original or certified copies).
Details on the shareholders, directors and ultimate beneficial owners (same details as those for natural persons described below).
Powers of attorney for the persons carrying out interaction with the company on behalf of the customer (issuing orders, signing documents for opening the account and other procedures).
Swift confirmation of the bank transfer. The information of the bank account showed on the swift must be identical to (a) and (b) above. Otherwise, the deposit must be returned to the same bank account it came from, immediately, without crediting the trading account.
One can NOT deposit from a company he owns – to his personal trading account, and vice versa.
One can NOT get deposits from his brother/mother/other relative bank account; unless that relative joins the trading account (signs the trader agreement).
Cash deposits to the company’s account by traders are forbidden. If such a deposit did occur, then in case of a withdrawal request, the trader will need to supply bank account details of the person who made the cash deposit, with a written proof of the account details (check, credit card etc.).
Do not credit a trading account before the deposit was complete (i.E. The required business days (usually three) have passed following the deposit). Do not credit the trading account based on future payments or checks.
A client cannot transfer funds between trading accounts not under his own name.