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Screenshot of a breaking news alert e-mail from Q2 2017
The Forex world has paid a lot of attention to what’s happening at Plus500 Ltd (LON:PLUS), especially at its UK operations, where accounts of clients have been frozen amid regulatory requirements for extra checks and verification reflecting anti-money laundering (AML) procedures.
In what seems as a normal reaction to the situation at Plus500, OANDA has decided to address its clients to clarify the need of robust AML procedures and “Know your customer” (KYC) rules.
In an announcement entitled “Why is regulation important?”, the broker states that AML and KYC procedures are necessary but also admits that they can create friction in the client on-boarding, funding, and withdrawal processes.
The company specifies that global regulations require companies to verify the identity of their clients, the source of funds used to fund their accounts and the destination of funds withdrawn from accounts. In the face of the friction such procedures may lead to, doing the right thing is crucial for cultivating long-term, sustainable client relationships.
In conclusion, OANDA notes that “cutting corners on AML and KYC procedures is a risky way to operate a brokerage and it’s a short-sighted way to view client relationships.”
The broker is regulated in numerous jurisdictions across the globe, including the United States and the United Kingdom. OANDA Europe Limited is authorised and regulated by the Financial Conduct Authority (FCA) in the UK, No: 542574.
To read the original announcement by OANDA, click here.
To learn more about OANDA’s regulatory and financial compliance, click here.