Anti-Money Laundering Policy
Introduction
IUX Markets (MU) LTD. (hereinafter the “Company”, “IUX”, “we”, “us”, “our”) holds a Global Business Licence issued under the FSA 2007. A holder of a Global Business Licence is a resident corporation, having its principal place of effective management in Mauritius, which proposes to conduct its business principally outside Mauritius. The Company specifically holds an Investment Dealer (Full Service excluding Underwriting) Licence issued under the Securities Act 2005, and is permitted to establish a trading platform in Mauritius and trade securities and similar on behalf of clients. Investment Dealer services, as all other non-banking financial services activities including the securities sector, are regulated by the FSC.
The Company is committed to maintaining the highest standards of Anti-Money Laundering (hereinafter the “AML”) and Counter-Terrorism Financing (hereinafter the “CTF”) compliance. In adherence with laws and regulations requirements, the Company ensures to obtain, verify, and record information that identifies each person or entity opening an account (hereinafter the “Client”). This process aims to evaluate the effectiveness of the Company’s internal systems and controls, addressing any deficiencies, and ultimately combating the laundering of criminal proceeds, the financing of terrorism, and the proliferation of weapons of mass destruction.
This Anti-Money Laundering Policy (hereinafter the “Policy”) forms an integral part of our agreement, policies, and terms & conditions that govern the relationship between IUX and the Client, which may be a legal entity or a natural person. Therefore, by entering into an agreement with the Company, Client confirms that they have read, understood and agreed to the terms of our Policy, as set out in this document.
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:
- 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;
- 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 in their form makes it complicated to trace the money being laundered;
- Integration. Funds get back into circulation as legitimate to purchase goods and services.
IUX adheres to the principles of Anti-Money Laundering and actively prevents any actions that aim or facilitate the process of legalizing of illegally gained funds. This Policy means to prevent the use of the Company’s services by criminals, with the aim of money laundering, terrorist financing or other criminal activity.
To prevent money laundering, the Company at its sole discretion reserves the right to suspend any Client’s operation, which we believe or reasonably believe that such operation in any way relates to illegal activities or may be related to money laundering activities. IUX shall also neither accept nor pay cash under such circumstances.
Services Offered
The Company shall perform activities / duties as are customarily authorised and performed by the holder of an Investment Dealer (Full-Service Dealer excluding Underwriting) Licence under the Securities Act 2005, in particular, carrying out the following activities:
- Act or hold itself as an intermediary in the execution of securities transactions for clients;
- Trade or hold itself to trade in securities as principal with the intention of reselling these securities to the public;
- Distribute or hold itself out to distribute securities on behalf of an issuer or holder of securities;
- Solicit any investor (person or institutional or body corporate) to enter into securities transactions;
- Manage portfolios of clients.
Unless authorised by the FSC, the Company will not engage in any other activity outside the scope of its licences. The Company shall give prior written notice to the FSC of any change in its activities.
The Company is aware that by virtue of the various types of services it offers as listed above, each of these activities and services may present different money laundering and terrorist and proliferation of weapons of mass destruction financing risks depending on factors like the customer type, source and use of funds, customer business sector and geography. Regardless of the role, the Financial Action Task Force (‘FATF’) recommends that the securities providers like the Company must continually tailor their own risk-based approach to assessing and managing ML/TF risk.
Company Procedures
IUX will make sure that it is dealing with a real person or legal entity. IUX also performs all the required measures in accordance with applicable law and regulations, issued by monetary authorities. The AML policy is being fulfilled within IUX by means of the following:
- Identifying and verifying the identity of each client;
- Identifying and verifying the identity of the ultimate beneficial owner;
- Obtaining information on the purpose and intended nature of the business relationship;
- Undertaking ongoing due diligence;
- Monitoring of Client activity;
- Verifying that the documents, data or information are genuine and reliable;
- Record keeping.
In the case where IUX identifies that the Client provided us with any false or stolen identification documentation or information, we shall reserve and exercise the following rights as we deem appropriate;
- Request the submission of accurate and factual documents or information; or
- Refrain from opening an account, commencing a business relationship, or performing a transaction; or
- Terminate the business relationship and the client’s existing account.
If the Company reasonably believes that the transaction is in any way connected or related to illegal activities, we shall reserve the right to refuse to process such transaction at any time.
Know Your Customer and Customer Due Diligence
AML – CFT Handbook requires Customer Due Diligence (hereinafter the “CDD”) be applied in the following circumstances:
- when establishing a business relationship;
- when there is a suspicion of money laundering or terrorist financing; or
- when there are doubts about the veracity or adequacy of documents, data or information previously obtained for customer due diligence.
In adherence to the AML laws and regulations, all Clients are required to complete the Company’s Customer Due Diligence procedure and verification process prior to unrestricted access to the Company’s full range of services. Before IUX starts any cooperation with the Client, the Company ensures that satisfactory evidence is produced or such other measures that will produce satisfactory evidence of the identity of any Client or counterparty are taken. The Company as well applies heightened scrutiny to Clients, who are residents of other countries, identified by credible sources as countries, having inadequate AML standards or that may represent a high risk for crime and corruption and to beneficial owners who reside in and whose funds are sourced from named countries. In this regard, in order to open an account with IUX, the Clients are required to furnish IUX with his/her personal information as prescribed in this Policy.
Notwithstanding the foregoing, upon opening an account with the Company, Clients may begin accessing certain limited services offered by IUX. However, until the verification process has been fully completed and approved by the Company, Clients shall not be permitted to conduct any transaction or series of related transactions with a cumulative value exceeding USD 10,000 (or its equivalent in other currencies). This restriction shall remain in force until the Client is fully verified in accordance with the Company’s standard and procedure as set forth herein and the policies published on the Company’s website.
No client can trade without approval of personal information. IUX does not prescribe the period of time for submitting such personal information and the personal information will be checked within 48 hours. In this regard, the Company shall ensure that the officers carrying on functions are fit and proper, suitably qualified and duly licensed or approved by the relevant regulator.
The Management Company which has been assigned the responsibility of carrying out the CDD process of the Company shall follow a risk-based approach to CDD. The risk levels (High, Medium, Low) will help determine the extent and frequency of CDD information and documents that will be requested on the Client as part of the ongoing monitoring process.
Individual clients
IUX is obligated by law to confirm and verify the identity of each person who registers on our system and opens an account with us. During the process of registration, each Clients are required to provide personal information, specifically:
- full name;
- date of birth;
- country of origin; and
- complete residential address.
The following documents are required in order to verify the personal information. The Client sends the following documents (in case the documents are written in non-Latin characters: to avoid any delays in the verification process, it is necessary to provide a notarized translation of the document in English) because of the requirements of KYC and to confirm the indicated information:
- Current valid passport (showing the first page of the local or international passport, where the photo and the signature are clearly visible); or
- Driving license which bears a photograph; or
- National identity card (showing both front and back pages);
- Documents proving current permanent address (such as utility bills, bank statements, etc.) containing the client’s full name and place of residence. These documents should not be older than 3 months from the date of filing.
Clients hereby affirm and undertake that they are aligned with all the conditions, as set out below;
- Clients must be capable of legally binding themselves to the contract under the laws applicable in their country of residence;
- Clients must be at full age under the laws applicable in their country of residence;
- Client must have a sound mind;
- Clients must have a full capacity to enter into the Transaction(s) and to exercise their rights and obligations;
- Clients have not been sanctioned for financial crime reasons, violation of IUX policy and/or abuse of IUX service;
- All the documentation and information provided to IUX during onboarding process are truthful, accurate, and complete;
- Clients have verified and ensured that their utilization of our online trading facility does not violate any laws or regulations of any jurisdiction that applies to them.
Corporate clients
Upon opening account with IUX, if the Client is legal person and none of the principal directors or shareholders already has an account with IUX, the following documentations must be provided:
- Certificate of Incorporation or any national equivalent;
- Memorandum and Articles of Association and statutory statement or any national equivalent;
- Company registry search, including confirmation that the person is not in the process of being dissolved, struck off, wound up or terminated;
- Latest audited financial statements or equivalent;
- Annual report or equivalent;
- Certificate of good standing our other proof of registered address of the company;
- Resolution of the board of directors to open an account and confer authority on those who will operate it;
- Copies of powers of attorney or other authorities given by the directors in relation to the company;
- Proof of identity of directors in case he/she will deal with IUX on behalf of the Client (according to the Individual identity verification rules described above);
- Proof of identity of the beneficial owner(s) and/or the person(s) on whose instructions the signatories on the account are empowered to act (according to the Individual identity verification rules described above).
Politically Exposed Person (PEP)
The Client agrees to declare their PEP status and provide copies of documents confirming such status.
Politically Exposed Person means an individual who has been entrusted with prominent public functions, it also extends to domestic, foreign, international organizations, their family members and close associates.
Domestic and Foreign PEPs include;
- Head of State and of government (e.g., King, President, and Prime Minister);
- Ministers and deputy or assistant ministers;
- Member of parliament of similar legislative bodies;
- Members of the governing bodies of political parties;
- Senior politicians, senior government, judicial or military officials, senior executives of state owned corporations (e.g, appellate courts, supreme courts, constitutional courts);
- Members of courts of auditors or of the boards of central banks;
- Ambassadors, charges d’affairs;
- Important political party officials;
- Other person or category of persons as may be specified by relevant supervisory authority or regulatory body.
International organization PEPS include;
- Members of senior management such as directors, deputy directors;
- Members of the board or equivalent functions or individuals who have been entrusted with equivalent functions, including directors, deputy directors;
- Members of the board or equivalent functions;
- Other person or category of persons as may be specified by relevant supervisory authority or regulatory body.
Enhanced Customer Due Diligence
In addition to Customer Due Diligence, reserves the right to request additional documentation or information from the Clients whenever we deem necessary for the ongoing monitoring of their activities. IUX may impose additional due diligence requirements to high-risk clients who meet the following conditions:
- where a higher risk of money laundering or terrorist financing has been identified;
- where through supervisory guidance a high risk of money laundering or terrorist financing has been identified;
- where the Client is from a high risk country as declared by the Financial Action Task Force (FATF) or relevant authorities;
- in relation to cross border correspondent banking and other similar relationships;
- where the Client is a political exposed person;
- where the Client was found to provide the Company with false or stolen identification documentation or information, and the Company decide to continue our business relationship;
- in the event of any unusual or suspicious activity; or
- when the clients meet with the condition as specified in the relevant laws and regulations.
It is understood that the clients are required to provide us with factual and accurate information.
- Occupation;
- Volume of assets;
- Annual income;
- Total cash and liquid assets;
- Intended nature of the business relationship;
- Source of income; and
- Reasons for intended or performed transactions.
In the event where the Company determines, in its sole discretion, that a Client is required to undergo Enhanced Customer Due Diligence, the Client shall be obligated to furnish the Company with all the required information as specified in this Policy within thirty (30) calendar days from the date the Client is notified by the Company.
Should the Client fail, refuse, or neglect to satisfy the Company with the required information as part of the Enhanced Customer Due Diligence as specified in this Policy within the aforementioned thirty (30) calendar days, the Company shall reserve the right, without any prior or further notice to the Client, to:
- Immediately terminate the business relationship with the Client;
- Permanently close the Client’s account(s) maintained with the Company; and
- Restrict any further transactions, including but not limited to trading activities, deposit acceptance, and withdrawal processing, save as otherwise provided herein.
In the event of termination of the business relationship as mentioned in the previous clause, where the Client holds any remaining balance of deposited funds in their account(s) with the Company:
- The Client shall be entitled to request the withdrawal of the remaining deposited funds (excluding any trading profits, bonuses, or promotional credits) within fourteen (14) calendar days following the date of termination;
- Withdrawals shall be limited strictly to the bank account, Credit/Debit card or Alternative Payment Method as per the Client’s original deposit information. For more information, please read the “Deposit and withdrawal requirements” as outlined in this Policy.
If the Client fails to withdraw the deposit funds within the specified fourteen (14) calendar days:
- The Client shall be deemed to have irrevocably waived any and all rights to claim such funds thereafter;
- The Company shall have the absolute right to appropriate, forfeit, and retain the deposited funds without any obligation to account for or return such funds to the Client, and without any liability whatsoever to the Client;
- The Company shall bear no responsibility or liability for any losses, costs, expenses, or damages arising directly or indirectly from the termination of the business relationship, the closure of the Client’s account, or the forfeiture of funds under this clause; and
- Nothing in this Clause shall restrict the Company from exercising any other rights, remedies, or actions available to it under applicable law, regulation, or contract.
Monitoring of client activity
In addition to gathering information from the Clients, IUX continues to monitor the activity of every Client to identify and prevent any suspicious transactions to ensure the regular monitoring of any transactions and other activity carried out as part of the business relationship. A suspicious transaction is known as a transaction that is inconsistent with the Client’s legitimate business or the usual Client’s transaction history known from Client activity monitoring. IUX has implemented the system of monitoring the named transactions (both automatic and, if needed, manual) to prevent using the Company’s services by criminals.
Suspicious Transaction Reports (STR)
IUX is responsible for channeling all internal suspicious transaction reports received from the employees. Upon receiving any internal suspicious transaction, we shall submit the STR to the relevant regulatory body, authorities and Payment Gateway entities to evaluate the grounds of suspicion, once it is confirmed, the Company shall initiate legal action in compliance with applicable laws and regulations. In case, there is no reasonable grounds, we shall document and file the decision. It is understood that IUX is not obliged to notify the client in the event that a STR has been submitted to the relevant regulatory body, authorities and Payment Gateway entities. However, if the ground of suspicion has been confirmed and IUX decides to initiate legal action, we shall formally notify the client in writing.
In this regard, the Financial Intelligence and Anti-Money Laundering Act 2002 require IUX to file STR in the occurrence of the following circumstances:
- Any transaction, or series of transactions executed within a short time frame, which in aggregate exceeds the threshold of USD 10,000;
- Multiple deposits or withdrawals executed in a manner that, in aggregate, exceed USD 10,000 within a short or uncharacteristic period; and
- Where the Company is unable to satisfactorily complete the Customer Due Diligence or Enhanced Due Diligence process.
Record keeping
Records must be kept of all relevant records including any account, files and business correspondence and documents relating to transactions, and information obtained for the purpose of identification and verification, as well as of all documents related to money laundering topics (e.g. files on suspicious activity reports, documentation of AML account monitoring, etc.). Those records are kept for a minimum of seven (7) years after the account is closed. In situations where the records relate to on-going investigations or transactions which have been the subject of suspicious transaction reporting, they should be retained for a minimum of seven (7) years after it is confirmed that the case is closed/decided/adjudicated.
Deposit and withdrawal requirements
All deposits and withdrawals on trading accounts held with IUX the following strict requirements:
- Due to AML / CTF laws, IUX cannot receive or deposit funds to third parties.
- Funds sent to IUX must be from a bank account, Credit/Debit card or Alternative Payment Method (Skrill, China Union Pay, Neteller, Fasapay or others) under the same name as the trading account name with IUX.
- All funds withdrawn from a trading account must go to a bank account, Credit/Debit card or Alternative Payment Method (Skrill, China Union Pay, Neteller, Fasapay or others) under the same name as the trading account name with IUX.
- All withdrawal requests are processed on First-in-First-Out (FIFO) basis according to the funding source of origination. For example, a deposit is made via Debit/Credit Card; then a subsequent withdrawal request is received. The amount of funds sent back to the relevant Debit/Credit Card, when a withdrawal request is received, may not exceed the original amount deposited. Any profits made in excess of the deposited amount will be transferred to a nominated bank account; which must be held in the same name as your trading account.
Examples:
- You deposited $100 via Credit Card and earned a profit of $1,000. Requesting a withdrawal of $1,000, you will get $100 to your Credit Card and the rest $900 to your bank account.
- You deposited $100 via Skrill and $50 via Credit Card. Requesting a Skrill withdrawal of $120, you will get $100 to Skrill and $20 to the card.
- All initial withdrawal requests must be verified for safety and security by provision of a bank statement; which includes account holder information and bank details. IUX will not accept deposits or withdrawals made under a different name to the registered IUX.
- If a trading account was credited in a way that cannot be used for funds withdrawal, the funds may be withdrawn to a bank account under the same name as the trading account name with IUX as long as the client provides satisfactory evidence of the ownership of bank account where the funds originated from as well as the destination bank account.
Measures taken
In cases of an attempt to execute transactions which IUX suspects are related to money laundering or other criminal activity, it will proceed in accordance with the applicable law and report suspicious activity to the regulating authority. IUX reserves the right to suspend any client’s operation, which can be regarded as illegal or may be related to money laundering in the opinion of the staff. IUX has complete discretion to temporarily block the suspicious client account or terminate an existing client relationship.
Annual Review
IUX is committed to act in compliance with the Financial Intelligence and Anti-Money Laundering Act 2002 and all applicable AML laws, regulations, and regulatory guidelines. To ensure the effectiveness, adequacy, and relevance of this Policy, IUX has a commitment to conduct a formal review of its Policy periodically, aiming to implement best practices for preventing the misuse of our services for money laundering and terrorist financing. These reviews and assessments are conducted on a regular basis and at least annually, or more frequently as may be required in response to material changes in the laws or regulations, international standards, industry best practices, or internal risk assessments.
The review process shall be coordinated by the Compliance Department, and shall consider the following factors, but not limited to:
- Changes in applicable laws, regulations, or regulatory guidance;
- Feedback or findings from regulators, auditors, or independent reviews;
- Identified deficiencies or gaps in the existing controls or procedures;
- The change in nature of the Company’s products, services, Client base, and geographic exposure; and
- Emerging risks related to money laundering and terrorist financing.
In this regard, IUX reserves the right to review, amend, and/or replace its Policy, at its sole discretion and without prior notice, whenever it deems fit or appropriate. All such amendments shall take immediate effect upon posting on the Company’s Website without prior notice, unless otherwise specified. The Client is encouraged to review the Policy periodically to stay informed about any revisions or updates. The Client acknowledges and agrees that proceeding to use the Company’s services after the revision has been made shall result that the Client implicitly agrees to the updated Policy.
