Anti-money Laundering

Markets-Invest does not tolerate money laundering and supports the fight against money launderers.

Markets-Invest has policies in place to deter people from laundering money.

What is Money Laundering?

Money Laundering is not just the attempt to disguise money derived from the sale of drugs. Rather money laundering includes any transaction or series of transactions that seek to conceal or disguise the nature or source of proceeds derived from illegal activities, including drug trafficking, terrorism, organized crime, fraud and many other crimes. Money laundering occurs when any of those funds from an illegal/criminal activity are moved through the financial system. It is moved in such a way as to make it appear that the funds have come from legitimate sources.

There is no specific method of Money laundering; however, usually three stages are commonly followed during which there may be numerous transactions made by the launderers that could alert a financial institution to a criminal activity:

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. Markets-Invest directs fund 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 stringent compliance program to deter, detect and report potential suspicious activity.

Defining Suspicious Activity

There is, as of yet, no clear regulatory guidance as to what constitutes “suspicious activity.” A determination of whether any transaction or series of transactions is suspicious will necessarily depend on the customer and the particular transaction(s), compared with the customer’s normal business activity. Unusual or questionable transactions, sometimes referred to as “red flags,” may include those that appear to lack a reasonable economic basis or recognizable strategy based upon what the firm knows about the customer. Suspicious activity can occur either at the outset of the client relationship or long after the relationship has been established.

Knowing Your Clients (“KYC”)

The Company has separate account opening procedures that are followed when opening new accounts. These procedures must be reviewed in conjunction with the Screening of Prospective Clients and AntiMoney Laundering Measures section of these Procedures. However, in addition to those new account opening procedures, each Associated person must be familiar with his or her client’s identity. Below are factors to be considered in carrying out the “Know Your Client” duty. The Compliance Officer will also be responsible for reviewing all new accounts and conducting an annual review of all accounts to consider the following factors:

“Red Flags” – Indicators at the Account Opening Stage:

Although by no means exhaustive, the following is a list of potential indicators of suspicious activity, which, if unexplained, may evidence money laundering activity:

Screening of Clients, Anti-Money Laundering Measures

The Company has in place procedures to prevent and detect money laundering. As part of those procedures, the Company also has in place detailed procedures on screening new clients. Such procedures are expanded upon in the Anti-Money Laundering context. The Compliance Officer is responsible for approving all new accounts to ensure that no account is subject to restricting or blocking before opening.

Documentary Verification

Markets-Invest will obtain the following information from all prospective customers:

For natural persons:

For non-natural persons / Corporate or Institutional:

  1. Memorandum and Articles of Association (certified original)
  2. Certificate of Registered address (certified original)
  3. Directors and shareholders Certificate (certified original)
  4. Certificate of Incorporation (certified original)
  5. Account opening Form completed, signed and initialed on every page Minutes completed, signed and initialed on every page
  6. Financial Position of the Company – Audited Financial Statements for last 2 years
  7. Full documents: Passport/ID, Copy of Credit Card and Proof of Address (i.e. utility bill) of empowered person
  8. Passport/ID, Proof of Address (i.e. utility bill) of all shareholders of the Company

Markets-Invest will close an account in cases where:

Deposits and Withdrawals

These guidelines have been implemented to protect Markets-Invest and its clients