Money laundering is one of the most common concerns that financial regulators are always working day and night to counter. It is arguably one of the most severe criminal offenses under the financial crimes divisions. Basically, money laundering involves the movement of funds [usually large sums of money] whose sources are illegal or suspect through financial systems in such a way that sanitizes the source of these funds. Usually, money laundering involves three major parties namely the owner of the funds, a financial institution such as a bank and interested parties. For instance, a politician could steal funds from the public coffers, then move it through a bank account in order for the bank to process the loot and remit different portions of it to designated bank accounts. Most money laundering schemes are devised by politicians, drug barons and other fraudulent businesses.
Stages Of Money Laundering
The following are the three main stages often followed during money laundering.
- Placement of cash or cash equivalents into a financial system.
- Movement of funds to different designated accounts. Usually, these are accounts that may not be directly related to the launderer’s known bank accounts, such as futures account. The funds are also usually transferred in a manner that the source remains obscure. One example is transferring it to smaller bank accounts in portions that the system regulators cannot flag off as suspicious activity”.
- The reintroduction of the laundered funds back into the economy. The aim is to bring back the money to circulation in such a manner that it now appears that the owner of the funds obtained it through legitimate means. A classic example of money laundering is smuggling drugs, laundering the proceeds through a bank and then investing the funds in a real estate development. Evidently, the money is put to good use, though its origin remains suspicious.
TDS Anti Money laundering policy
One of the industries that’s prone to money laundering is the cryptocurrency trading industry. One reason why launderers of illicit funds prefer such trading accounts is due to the inadequate regulations normally imposed on such accounts. But if you are looking for the safest platform to trade your cryptocurrency, look no further than TDS Capital Group. As a security measure against money laundering, we normally redirects funds withdrawals to the remittance source.
This platform abides by the United Kingdom’s Joint Money-Laundering Steering-Group. This group works under the umbrella of the Financial-Action Task-Force (FATF), an intergovernmental agency tasked with preventing money laundering, of which UK is part.
The following are some of the policies adopted by TDS Capital through which the platform tries to combat money laundering.
- Requiring valid identification from their clients.
- Maintaining crucial records such as records on clients’ identification
- .Establishing whether their clients are suspected terrorists or not. This is done by checking their credentials against the international terrorists watch list.
- Making clients aware their information could be used to have them verify their identity. A dishonest client will object to such requests.
- Carefully tracking money movements.
- Not accepting cash or any other forms of third-party transactions.
TDS Capital Group is also cognizance of and has implemented all the requirements by the International Anti-money Laundering to have financial institutions track and monitor the movements of funds within their systems.
According to the International Anti-money Laundering, financial institutions should employ mechanisms for deterring, detecting, flagging and reporting any suspicious money movements.