Let us explain to you how money laundering works and how we prevent this activity from happening on our website.
How Money Laundering Works
Money laundering is an activity performed by an individual or an organization to hide illegally earned money from the legal system and then introduce this money back into the system at the right time to make more money on it. In simple words, the money launderer will first make money through illegal means. In the second stage, the money launderer will hide this money in such a way that the system cannot recognize it as laundered money. In the third stage, the money is moved out of the system gradually. In other words, at this stage, there is no existence of the money in the system at all.
However, the last stage is the most important one because at this stage, the money launderer brings the money back into the system. This money is then used for a variety of purposes. In most cases, the money is put into lucrative investments. For example, the money launderer might start a company or invest in the real estate with the looted money. Here is a detailed look into how this process takes place.
- Stage 1
The money launderer uses a variety of methods to make money illegally. In most cases, the criminal party is a politician or someone who has a lot of influence in the industry of operation. Ordinary people can’t usually launder money because it involves huge amounts of money, which can be accessed through illegal means only. One example would be a government that brings projects from foreign countries to its country on favoritism basis. For example, the government might decide with a Company XYZ what the total cost of the project will be. Both parties can agree to inflate the cost of the project. The government then takes a cut from the inflated cost.
- Stage 2
The money that the government has made from the deal will have to be put in a bank account. However, a very important part of the process is involved at this point. The money launderer will hide its identity while putting the money in the bank account. For this purpose, the government will shake hands with a particular bank in the country. The money launderer will then create anonymous accounts or use accounts whose owners no longer use their accounts or have died. Many of these accounts are then used to launder a huge amount of money in small chunks.
- Stage 3
At this point, the money is in many different accounts that belong to many different individuals, who are either not using their accounts or have died. This way, the account holders don’t even know what’s in their bank accounts, but the money is there in their accounts in their names, which also helps the money launderer keep its identity hidden. The third stage is for the money launderer to move the money out of the system before it gets caught. That’s where the money launderer can use the services of an online broker. If the online broker does not have strict policies in place, the money will be put in the account with any verification and identity checks.
- Stage 4
The money launderer now brings the money back into the system. This money can be invested in real estate or any other lucrative projects within the country. The money has now become legal because it is brought back through the same anonymous accounts whose owners are either dead or unaware of their accounts. The money launderer starts a business and becomes an influential personality in the country.
Rival ltd. and Its Anti-Money Laundering Policy
Rival ltd. does not and will not participate in any activity that proves to be harmful to the system, its traders, and the industry as a whole. To keep money launderers at bay, Rival ltd. has strict anti-money laundering policies in place. Our anti-money laundering policies are in full compliance with Joint Money-Laundering Steering-Group of the United Kingdom. FATF performs the monitoring of the activities of this group to ensure that it is in compliance with all the anti-money laundering regulations and protocols. Here is how we prevent money launderers from using our trading platform.
- We ask for complete identification from our traders at the time of signup and when they withdraw money from their online trading account.
- We keep all the information provided by the trader/client safe with us.
- We’ll tally the records that the client/trader has provided with the international watch list of terrorists.
- We make sure that our clients know how their information can be used for their identification. When a client has ill intentions, they always have issues with this particular policy.
- We only accept money through the methods stated on the website. No other methods are allowed for depositing or withdrawing money.
- We make sure to watch the movement of the money as closely as possible.
At Rival ltd., we take every step to make sure that our traders and partners are satisfied with our services. We keep things transparent and abide by the regulations and rules laid down by the International Anti-money Laundering.
We also hope for our clients to understand the implications of these policies and the safety they offer them as they trade on our trading platform. Together, we can create a strong partnership that benefits us both in multiple ways.