Anti-Money Laundering

MG Financial Group does not tolerate money laundering and supports the fight against money launderers. In particular, MG Financial Group is following guidelines outlined in the US' "Patriot's Act" and by US regulators. MG Financial Group has policies in place to deter people from laundering money. Some of these policies include:

• Making sure clients have valid proof of identification
• Maintaining records of identification information
• Determining that clients are not known or suspected terrorists by checking their names against lists of known or suspected terrorists
• Telling clients that information they provide may be used to verify their identity
• Closely following clients' money transactions
• Not accepting cash, money orders, third party transactions, Exchange-Houses transfers, or Western Union transfers.

Money laundering occurs when funds from an illegal/criminal activity are moved through the financial system in such a way as to make it appear that the funds have come from legitimate sources, according to the National Futures Association. Money Laundering usually follows three stages. First, cash or cash equivalents are placed into the financial system. Second, money is transferred or moved to other accounts (e.g. futures accounts) through a series of financial transactions designed to obscure the origin of the money (e.g. executing trades with little or no financial risk or transferring account balances to other accounts). Finally, the funds are reintroduced into the economy so that the funds appear to have come from legitimate sources (e.g. closing a futures account and transferring the funds to a bank account). Trading accounts that are carried by FCMs are one vehicle that can be used to launder illicit funds or to hide the true owner of the funds. In particular, a trading account could be used to execute financial transactions that help obscure the origins of the funds. The US government requires financial services institutions, including FCMs and IBs, to be aware of potential money laundering abuses that could occur in a customer account and implement a compliance program to deter, detect, and report potential suspicious activity.

These guidelines have been implemented to protect MG Financial Group and its clients. For questions/comments, contact MG Compliance at compliance@mgforex.com.