AML Policy
FTM FUNDED TRADER MARKETS LTD is committed to preventing money laundering (ML) and terrorist financing (TF) in compliance with Cyprus AML/CTF laws, EU Directives, and international standards. As a Virtual Financial Asset (VFA) exchange operating under Cyprus jurisdiction, we have implemented robust policies and procedures to safeguard our platform and ensure regulatory compliance.
Key Objectives
Prevent Illicit Activities: Ensure our services are not used for ML, TF, or other financial crimes.
Regulatory Compliance: Adhere to the Prevention and Suppression of Money Laundering and Terrorist Financing Law (L188(I)/2007), as amended, and EU Directives (2015/849, 2018/843).
Risk Management: Identify, assess, and mitigate risks associated with clients, transactions, and jurisdictions.
Core Components
Customer Due Diligence (CDD): All clients undergo Know Your Customer (KYC) verification, including identity and address checks.
Simplified Due Diligence (SDD) applies for low-risk clients with transactions up to €1,000 annually.
Enhanced Due Diligence (EDD) is mandatory for high-risk clients, large transactions, or clients from high-risk jurisdictions.
Risk Assessments:
Business Risk Assessment (BRA): Conducted every six months to evaluate risks related to products, services, and jurisdictions.
Customer Risk Assessment (CRA): Assigns clients a risk score (Low, Medium, High) based on behavior, transaction patterns, and profile.
Transaction Monitoring:
Real-time monitoring of transactions to detect suspicious or unusual activity.
Clients exceeding thresholds (e.g., €1,000 per transaction or 45% of verified income) undergo additional scrutiny, including Source of Funds/Source of Wealth (SOF/SOW) verification.
Wallet Screening:
All client wallets are screened at onboarding, deposit, and withdrawal to ensure no links to blacklisted or high-risk wallets.
Privacy coins and anonymous wallets are prohibited.
Withdrawals follow a closed-loop policy, returning funds to the original deposit wallet.
Reporting:
Suspicious activities or transactions are reported immediately to the Money Laundering Reporting Officer (MLRO) and, if necessary, to the Financial Intelligence Unit (MOKAS).
Clients involved in Politically Exposed Persons (PEPs), sanctions lists, or negative media are terminated.
Employee Training:
Mandatory AML/CTF training for all employees upon hiring and annually thereafter.
Specialized training for roles like the Payments and AML teams to recognize red flags.
Record Keeping:
All client data, transactions, and due diligence records are retained for five years post-relationship termination, unless otherwise required by authorities.
Client Acceptance Policy (CAP):
High-risk appetite for clients, mitigated by strict controls and EDD.
Clients failing to provide due diligence information or engaging in prohibited activities (e.g., fraud, use of blacklisted wallets) are blocked or terminated.
Travel Rule Compliance:
For VFA transfers exceeding €1,000, client information (e.g., name, wallet address) is shared with other financial institutions, as required by FATF Recommendation 16.
Jurisdiction Risk:
Annual review of jurisdictional risks based on sources like FATF, MONEYVAL, and UN Sanctions lists.
High-risk jurisdictions (e.g., Iran, Uzbekistan) trigger additional due diligence.
Commitment to Compliance
FTM FUNDED TRADER MARKETS LTD maintains a three-line defense model (client-facing staff, MLRO, and audits) to ensure adherence to AML/CTF standards. Our policies are reviewed annually or upon significant regulatory or business changes. Non-compliance by staff or clients may result in disciplinary action, account termination, or reporting to authorities.
For a full copy of the AML Policy, please reach out to billing@fundedtradermarkets.com.