Money laundering is a criminal activity where money is filtered in illegal methods acquired through a series of transactions, so that the money may appear to be clean and and acquired from legal activities.
It is a way to legitimize funds acquired from illegal activities.
Stages of money laundering :
- Placing Cash or cash equivalents in the financial system.
- Transferring money to other accounts (for example transfers to other accounts through a series of financial transactions and deals with little or no financial risk).
- Returning the funds which now looks like funds from a legitimate sources (for example, closing the account and transferring the money to a different bank account ).
Anti-money laundering mechanisms
Trading accounts were one of the places that could be used for illegal money laundering or hiding the real owner of funds, that’s why AiTrade has many policies for AML :
- ID check - checking for clients' names in lists of known or suspected terrorists.
- Informing our clients that the information they provide can be used to verify their identity.
- Close observation of cash transactions.
- In the case of fund transfers using credit card , we ask for a copy of your credit card number that contains only the last four digits.
- Money withdraws are performed for the original investor himself and not for no other party, as a precautionary measure.