Anti-Money Laundering (AML)

What is Customer Due Diligence (CDD)?

Customer Due Diligence is information that comprises of facts about clients, which should enable an organization to assess the extent to which the client exposes it to a range of risks. These risks include money laundering and terrorist financing.

Customer Due Diligence (CDD) procedures applies during the onboarding of a client but is also an on-going review. Essential components of CDD are:

  • Obtaining documents to gather information for identification
  • Verifying the authenticity of gathered information
  • Ongoing monitoring of client activity for any irregularities
  • Contact with Clients from time to time to ensure the provided information are up to date and relevant

Our policies also include:

  • Determining that clients are not known or suspected terrorists by checking their names against lists of known or suspected terrorists
  • Not accepting cash, money orders, third party transactions, exchange houses transfers or Western Union transfers.
  • 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).

And finally, the funds are re-introduced into the economy so that the funds appear to have come from legitimate sources (e.g. closing a futures 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. In particular, a trading account can be used to execute financial transactions that help obscure the origins of the funds.

Trader.Online markets directs funds withdrawals back to the original source of remittance, as a preventative measure. International Anti-Money Laundering requires financial service institutions to be aware of potential money laundering abuses that could occur in a customer’s account and implement a compliance program to deter, detect and report potential suspicious activity.

These guidelines have been implemented to protect Trader.Online markets and its clients.

For more details about these guidelines, please click here.
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