AML Policy
TheFXTrade is dedicated to upholding the highest standards of Anti-Money Laundering (AML) compliance and Counter-Terrorism Financing (CTF). In support of government efforts to combat terrorism funding and money laundering, financial regulations mandate that all institutions must collect, verify, and document information identifying each individual opening an account.
Money laundering involves converting funds obtained from illegal activities like fraud, corruption, or terrorism into seemingly legitimate assets or investments, concealing their true origin.
The process of money laundering typically unfolds in three stages:
1. Placement: Illicit funds are converted into financial instruments like checks, bank accounts, or transferred through money exchanges. Smaller, staggered deposits may be made to avoid suspicion, known as “smurfing.”
2. Layering: Funds are moved between accounts and financial instruments to obscure their origin, making tracing difficult.
3. Integration: Laundered funds re-enter the economy as legitimate funds used to buy goods or services.
TheFXTrade strictly follows Anti-Money Laundering principles and actively prevents any activity that facilitates the legalization of illegally obtained funds. Our AML policy is designed to deter criminals from using our services for money laundering, terrorist financing, or other unlawful activities.
To prevent money laundering, TheFXTrade does not accept or disburse cash under any circumstances. We reserve the right to suspend operations of any client engaging in illegal activities or suspected of money laundering.
COMPANY PROCEDURES
TheFXTrade ensures that it engages with genuine individuals or legal entities and adheres to all necessary measures as per the laws and regulations set forth by monetary authorities. The implementation of TheFXTrade’s AML policy includes:
1. Know Your Customer (KYC) policy and due diligence procedures.
2. Monitoring of client activities.
3. Record-keeping practices.
KNOW YOUR CUSTOMER AND DUE DILIGENCE
Due to TheFXTrade’s dedication to AML and KYC policies, every client must undergo a verification process. Before commencing any business with a client, TheFXTrade ensures the presentation of sufficient evidence or takes necessary measures to verify their identity. Additionally, the company applies enhanced scrutiny to clients from countries with inadequate AML standards or identified as high-risk for crime and corruption, as well as to beneficial owners residing in and sourcing funds from such countries.
INDIVIDUAL CLIENTS
During TheFXTrade’s registration process, clients are required to provide personal details, including full name, date of birth, country of origin, and complete residential address. The following documents are necessary for verifying this information due to KYC requirements:
1. A current valid passport (displaying the first page with a clear photo and signature), or
2. A driving license with a photograph, or
3. A national identity card (both front and back pages).
Additionally, documents confirming the current permanent address (like utility bills or bank statements) are needed, showing the client’s full name and residential location. These documents should not be older than three months from the date of submission. If the documents are in non-Latin characters, a notarized translation into English is required to avoid delays in the verification process.
CORPORATE CLIENTS
If TheFXTrade applicant company is listed on an approved stock exchange or can provide independent evidence of being a wholly owned or controlled subsidiary of such a company, additional identity verification steps are generally not required. However, if the company is unlisted and none of its main directors or shareholders already holds an account with TheFXTrade, the following documentation is necessary:
1. Certificate of Incorporation or equivalent national document.
2. Memorandum and Articles of Association, along with statutory statements or national equivalents.
3. Certificate of good standing or proof of the company’s registered address.
4. Board resolution authorizing the account opening and specifying authorized operators.
5. Copies of powers of attorney or other authorities given by the directors concerning the company.
6. Identification proof for directors who will transact with TheFXTrade on behalf of the company (following the Individual identity verification rules).
7. Identification proof for beneficial owners and/or individuals instructing the account signatories (following the Individual identity verification rules).
RECORD KEEPING
All transaction data, identification records, and documents related to anti-money laundering (AML) matters (such as suspicious activity reports and AML account monitoring documentation) must be meticulously maintained. These records are retained for at least 7 years following the closure of the account.
DEPOSIT AND WITHDRAWAL REQUIREMENTS
All deposits and withdrawals on trading accounts held with TheFXTrade are subject to stringent requirements:
1. According to AML/CTF laws, TheFXTrade cannot accept or transfer funds to third parties.
2. Funds sent to TheFXTrade must originate from a bank account, Credit/Debit card, or Alternative Payment Method (such as Skrill, China Union Pay, Neteller, Fasapay, or others) under the same name as the trading account registered with TheFXTrade.
3. All funds withdrawn from a trading account must be transferred to a bank account, Credit/Debit card, or Alternative Payment Method under the same name as the trading account with TheFXTrade.
4. Withdrawal requests are processed based on a First-in-First-Out (FIFO) basis, following the funding source of origin. For instance, if a deposit is made via Debit/Credit Card, subsequent withdrawal requests are processed accordingly. The amount sent back to the relevant Debit/Credit Card during a withdrawal request cannot exceed the original deposit amount from the same source. Any profits exceeding the deposited amount are transferred to a nominated bank account, which must be held in the same name as the trading account.
MEASURES TAKEN
If TheFXTrade detects transactions that are suspected to be linked to money laundering or other criminal activities, it will act in accordance with relevant laws and report such suspicious activity to regulatory authorities.
TheFXTrade retains the right to suspend operations of any client account deemed illegal or potentially connected to money laundering, as assessed by the staff’s discretion. TheFXTrade may temporarily block suspicious client accounts or terminate existing client relationships at its sole discretion.
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