What is money laundering?
Money laundering is the process of introducing illegally-acquired funds into the legal, economic, and financial cycle. This involves acquisition, possession, and transaction, as well as any attempt of concealment or disguise of the true owner and source of monetary instrument.
Why does Magnatus have and implement an AML Policy?
As an electronic money exchanger, Magnatus is obliged to comply with regulatory requirements and to implement measures against fraud, money laundering, and financing of terrorist activities. Our AML policy has been composed and structured to avert money laundering as required by local AML legislation, which includes the necessity to have adequate systems and controls in place to mitigate the risk of the firm being used to facilitate financial crime.
Magnatus has vigorous policies, controls and procedures to detect, prevent and report suspicious activity. To comply with local requirements, and global sanctions, we screen our customer accounts against government watch lists. In addition, we may request that you provide us with documentation to help prove your identity or for business verification purposes.
Magnatus has controls and procedures in place to detect, prevent and report suspicious activity. To comply with local requirements and global sanctions, we we compare accounts of our clients with lists of unwanted clients. In addition, we may require provide you with documentation to prove your identity or business verification.
If reasonable suspicions arise from the administration of Magnatus that the User is trying to use the services of Magnatus for money laundering or for the purpose of carrying out any other illegal operations, the administration has the right to:
- suspend the execution of the User's exchange operation;
- request from the User identification documents (passport, ID-card or driver's license);
- request a selfie from the User with this document and a sheet on which the current date and signature will be written by hand;
- to request other information related to payments: through which platform did the funds come to you? If possible, screenshots of the sender's wallet/platform withdrawal history should be provided, as well as links to both transactions in the explorer; for which service you received funds; how much the transaction was, as well as the date and time of its execution; through which contact person did you communicate with the sender of funds? If possible, screenshots of the correspondence with the sender should be provided, where we can see the confirmation of sending funds.
- Usually, the User's funds are frozen on the Exchanges and other custodial wallets where Magnatus accepts Funds if the transfer was determined to be “High Risk Score” or for other reasons. In such case, Magnatus will relay the requirements of the Exchange or the Payment System. Also, Magnatus cannot process an Order or refund Funds that it does not have. Funds are not credited to the Magnatus account, but are in the arrest, stored and awaiting a decision from the Exchange (or other Payment System), which, in turn, is waiting for a decision from its security department, the FBI or the police of the country that imposed sanctions and arrest.
How does Magnatus comply to applicable local rules on anti-money laundering, terrorism financing, and fraud?
Magnatus implements an AML policy with a proper compliance framework. The company has:
1. Appointed an AML Officer Company who coordinates all measures implemented to prevent money laundering and provides the overall risk mitigation concepts;
2. Established and maintained a Risk Based Approach (RBA) towards assessing and managing the money laundering and terrorist financing risks to the company;
3. Established and maintained risk-based customer due diligence, identification, verification and know your customer (KYC) procedures;
For exchanges from okpay, perfectmoney and advcash, the user's e-mail address and phone number must be verified and confirmed
For exchanges from paypal and skrill, all the verification steps conducted for basic accounts will be performed, plus additional due diligence verification which includes verification of identity and billing address
In situations where the risk of fraudulent activity is high, enhanced due diligence is required, which includes verification of identity, billing address, and payment instrument (e.g., card used by customer), if applicable
4. Set up procedures and guidelines for reporting suspicious activity internally and to the relevant law enforcement authorities as appropriate;
5. Set up a system to maintain and archive records for the minimum prescribed periods; and
6. Trained and instructed all company employees regarding AML and terrorism financing.
For questions and clarifications on our AML Policy, you may contact us.