AML/CFT Protocol

SwissTrades365 aligns its operations with MONEYVAL guidelines – the Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism – to safeguard its clients against money laundering and the financing of terrorism.

MONEYVAL serves as a pan-European monitoring body, ensuring compliance with key international standards in combating money laundering and terrorism financing. With 47 member states, it directly reports to the Committee of Ministers of the Council of Europe. MONEYVAL also assesses the efficacy of regulatory implementations and offers recommendations to national authorities for enhancing their systems. Additionally, MONEYVAL conducts comprehensive research on money laundering and terrorist financing methods, trends, and techniques. Initially an observer to the FATF, the organisation later attained associate membership in June 2006. Consequently, SwissTrades365 has integrated MONEYVAL procedures to mitigate money laundering risks.

Here are some of the procedures we apply:

  • Validating clients’ proof of identification and maintaining records of identification information.
  • Screening clients against lists of known or suspected terrorists to ensure they are not involved in terrorism or are under suspicion.
  • Informing clients that the information they provide may be used for identity verification purposes.
  • Monitoring clients’ financial transactions.
  • Rejecting cash, money orders, third-party transactions, exchange house transfers, or Western Union transfers. Money laundering occurs when funds from illegal or criminal activities are disguised as originating from legitimate source

How Money Is Normally Laundered

Money laundering involves several stages, outlined below:

1. Placement Stage

This is the initial stage where cash or its equivalents are transferred into accounts, often through financial institutions, in a series of transactions. The primary aim is to conceal the origin of the money, such as executing trades with minimal financial risk or transferring account balances.

2. Layering Stage

In this stage, known as “layering” or “structuring,” funds are fragmented into smaller transactions to obfuscate the laundering process. Nowadays, these funds are frequently used to trade various stocks across different markets, creating a complex trail that is difficult to detect. Criminals also utilise techniques such as buying and selling assets to further obscure the origin of the funds.

3. Integration Stage

The final stage involves integrating the laundered money back into legitimate channels. For example, funds may be returned to criminals through legitimate means, such as closing a futures account and transferring the funds to a bank account.

Given that trading accounts can be utilised to launder unlawful funds or conceal the true owner by executing transactions that obscure the fund’s origins, SwissTrades365 directs fund withdrawals back to their original source. These measures are implemented to safeguard SwissTrades365 and its clients, as international anti-money laundering regulations require financial institutions to identify and prevent potential money laundering activities in customer accounts. For further inquiries or comments regarding these instructions, please contact us at [email protected].

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