With financial crime being more prevalent than before, both companies and governments must develop tactics to curb it. Firms must comply with the Bank Secrecy Act and its implementing regulations. Probably the most common way of doing so is to implement anti-money laundering policies that prevent the smuggling of illegally-obtained funds. The purpose of the AML rules is to help detect and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation. Most countries now have anti-money laundering policies, and many require that all financial institutions strictly abide by these policies to support efforts against financial crime.

Anti-money laundering policy is a strategy used by an organization to prevent and effectively combat money laundering and other financial crimes. Anti-money laundering policies typically require most entities that complete financial transactions to keep thorough records of their client's accounts and activities. If they come across any information that appears to be suspicious, they are required to report it to the government for further investigation. Financial institutions are crucial for the collection of financial intelligence, and the public sector greatly depends on them to compile data.

Money laundering is defined as the process where the identity of the proceeds of crime is so disguised that it gives an impression of legitimate income. Criminals specifically target financial services firms through which they attempt to launder criminal proceeds without the firm's knowledge or suspicion.

TradeFxP Ltd AML Policy is designed to prevent money laundering by meeting the legal standards on combating money laundering and terrorism financing, including the need to have adequate systems and controls in place to mitigate the risk of the firm being used to facilitate financial crime. This AML Policy sets out the standards which must be complied with and includes:

Appointing a Money Laundering Reporting Officer (MLRO) who has a sufficient level of seniority and independence, and who has responsibility for oversight of compliance with the relevant legislation, regulations, rules, and industry guidance

Establishing and maintaining a Risk-Based Approach (RBA) to the assessment and management of money laundering and terrorist financing risks faced by the firm.

Establishing and maintaining risk-based Customer Due Diligence (CDD), identification, verification, and Know Your Customer (KYC) procedures, including enhanced due diligence for customers presenting a higher risk, such as Politically Exposed Persons (PEPs).

Establishing and maintaining risk-based systems and procedures for the monitoring of ongoing customer activity.

Establishing procedures for reporting suspicious activity internally and to the relevant law enforcement authorities as appropriate.

Maintaining appropriate records for the minimum prescribed periods.

Providing training for and raising awareness among all relevant employees.

TradeFxP Ltd is committed to the highest standards of Anti-Money Laundering (AML) compliance and Counter-Terrorism Financing (CTF). To help the government fight the funding of terrorism and money laundering activities, the law requires all financial institutions to obtain, verify, and record information that identifies each person opening an account

Money laundering - the process of converting funds, received from illegal activities (such as fraud, corruption, terrorism, etc.), into other funds or investments that look legitimate to hide or distort the real source of funds.

The process of money laundering can be divided into three sequential stages

Layering. Funds are transferred or moved to other accounts and other financial instruments. It is performed to disguise the origin and disrupt the indication of the entity that made the multiple financial transactions. Moving funds around and changing their form makes it complicated to trace the money being laundered.

Integration. Funds get back into circulation as legitimate to purchase goods and services.

Placement. At this stage, funds are converted into financial instruments, such as checks, bank accounts, and money transfers, or can be used for purchasing high-value goods that can be resold. They can also be physically deposited into banks and non-bank institutions (e.g., currency exchangers). To avoid suspicion by the company, the launderer may as well make several deposits instead of depositing the whole sum at once, this form of placement is called smurfing.