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Screenshot of a breaking news alert e-mail from Q2 2017
FX, CFD and spread betting company Tradenext has today announced that it has enhanced its client registration processes to further reduce its exposure to fraud and malpractice.
The firm has strengthened its already rigorous approach in order to adhere to and exceed anti-money laundering and Know Your Customer requirements.
Following the regulatory adherence and administrative matters which surround the FCA’s anti-money laundering (AML) and know your client (KYC) procedures which recently caused Plus500 Ltd (LON:PLUS) to freeze accounts, and restrict deposit and withdrawal transactions, it is becoming apparent that British firms are taking a long and close look at their administrative procedures.
The FCA authorised firm which is based in London and focuses on the Indian subcontinent, has strict yet effective on-boarding processes, including automated software that screens clients for key checks including peps and sanctions, in addition its qualified new accounts team applies thorough techniques to ensure secondary checks are complete.
Client on-boarding is a crucial component for regulated financial services businesses when carrying out their regulatory responsibility of reducing and preventing financial crime.
Organised crime is a significant threat costing the UK at least £24 billion each year as well as impacts on the economy and growth. Money laundering is a key enabler of organised crime, which risks damaging the integrity and stability of financial markets and institutions, undermines consumer confidence and threatens the reputation of businesses and the City.
As well as costing the UK economy tens of millions of pounds annually, serious cybercrime remains one of the UK’s top national security risks alongside terrorism, according to recent government official assessments.
And, after a series of scandals that have shaken public faith in the finance industry the FCA, earlier this year, added financial crime watch as one of seven key risk areas in its 2015-16 business plan.
Patrick Lindsay head of compliance commented: “We constantly explore new methods that can maintain our stringent and rigorous standards. The online trading space is a by-product of technological advancements taking place on a global scale, and the non-face to face nature of the business means that firms need to pay additional attention to applications.
“As a regulated firm it is vital that we have adequate client on-boarding processes as well as the necessary systems and controls to minimise the risk of financial crime” concluded Mr. Lindsay.