AML Policy

Money laundering cannot be tolerated by MGC Logic at any cost as they back up the struggle against the people involved in this financial crime. They follow the instructions provided by the Joint Money Laundering Steering Group of the UK. It is an intergovernmental body that was established in the UK to fight with the activities like terrorist funding and money laundering as it is a full-fledged member of FATF or the Financial Action Task Force.

What is anti-money laundering?

The policies designed by MGC Logic to discourage people involved in financial crimes like money laundering are known as Anti-Money Laundering policies. These policies may include:

  • Make it sure that all of their customers have valid proofs of their identification
  • Maintenance of the records of the information of clients’ identification
  • Finding out that their clients are neither suspected nor established terrorists by checking the lists of suspected or known terrorists to find their names
  • Tell the customers that the information provided by them can be used for the purpose of confirming their identity.
  • Follow the money transactions of the customers closely
  • Not acknowledging financial transfers from the third party, through Western Union or exchange houses as well as money orders and cash.

Reasons for the occurrence of money laundering

When funds are transferred through a financial system for criminal or illegal activities in a way so that it looks like the funds have been received through some legally recognized sources then it is known as money laundering. Normally money laundering is done in three steps, like:

  • First of all, cash money or an equivalent amount of money is deposited with a financial system
  • Secondly, the money deposited is moved or transferred to other accounts through a number of monetary transactions in a way so that the original source of the money remains unidentified. In other words, it is a kind of execution of trades with or without any monetary risk or moving the balances in the account to some other accounts.
  • Thirdly, the money is again used in the economy in a way that it looks that the funds are provided by legal sources like closing a private account and moving the money to an account in a bank.

Money launderers use trading accounts as a mean to transport to hide the actual owner of the money or transfer illegal money. A trading account can be used particularly to carry out monetary transactions to make it difficult to understand the original sources of the money.

The withdrawal of funds has been directed back by MGC Logic, as a measure to prevent money laundering, to the original source of payment.

The financial institutions are required to be aware of the abuses of money laundering, according to international anti-money laundering institution. The laundered money can appear in the account of a customer and a compliance program is implemented so that suspicious activity can be detected, discouraged and reported.

These instructions have been applied for the protection of MGC Logic and its customers.Main aim of this attempt is to stop money laundering as effectively as possible.