FXOpen wishes to inform its customers that it must be compliant with Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (hereinafter – AML/CFT Act) effective from June 30, 2013. To help the government fight the funding of terrorism and money laundering activities, law requires all financial institutions to obtain, verify, and record information that identifies each person opening an account. Therefore FXOpen has developed internal Anti-Money laundering and Counter-Terrorism Programme (hereinafter – AML Programme) based on the risk assessment, so the objectives of the AML/CFT Act can be achieved. These are:
- To detect and deter money laundering and financing of terrorism;
- to maintain and enhance New Zealand’s international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Financial Action Task Force; and
- To contribute to public confidence in the financial system.
By applying for an account with FXOpen you are taken to agree to the following terms:
- you warrant that you comply with all applicable anti-money laundering laws and regulations, including but not limited to the AML/CTF Act and associated rules and regulations (in force from time to time);
- you are not aware and have no reason to suspect that:
- the money used to fund your deposit in your account has been or will be derived from or related to any money laundering or other activities deemed illegal under applicable laws or regulations or otherwise prohibited under any international convention or agreement (“illegal activities”); or
- the proceeds of your investment in the Fund will be used to finance illegal activities; and
- you agree to promptly provide us with all information that we reasonably request in order to comply with all applicable laws and regulations relating to anti-money laundering.
As per the AML Programme FXOpen will conduct initial and ongoing due diligence for each customer according to risk level posed by the customer.
What this means for you: In compliance with the Privacy Act of 1988, FXOpen will ask for certain minimum identification information from each customer which opens an account; record customer identification information and the verification methods and results; provide notice to customers that we will seek identification information and compare customer identification information with government-provided lists of suspected terrorists.
This minimum information may include:
- the customer's full name; and
- the person's date of birth if natural person; and
- if the person is not the customer, the person's relationship to the customer; and
- the customer's address or registered office; and
- the customer's company identifier or registration number; and
- the anticipated level and nature of the activity that is to be undertaken;
- the expected origin of the funds to be used within the relationship; and
- details of employment and sources of wealth or income.
In order to verify the abovementioned information FXOpen will require to submit the following documents:
- For individuals:
- Passport or ID card or similar document that:
- contains the name, date of birth, a photograph of the person in whose name the document is issued; and
- is issued by a foreign government, the United Nations or an agency of the United Nations.
- Recent utility bill – Within three months old, or any similar document proving Current permanent address.
- For corporate customers:
- Copy of Certificate of Incorporation or any national equivalent;
- Copy of Memorandum and Articles of Association or any national equivalent;
- Certificate of good standing or other proof of registered trading address of the company;
- A copy of the resolution of the board of directors to open an account and confer authority on those who will operate it;
- Proof of identity of directors in case he/she will deal with FXOpen on behalf of the Customer (according to the Individual identity verification rules described above).
FXOpen may request you to provide additional information accompanied with respective documents. In certain cases FXOpen may be obliged to verify the identity of the customer by the mean of copies of documents provided that they are certified by a trusted referee.
Wash Trades Prohibited
This is to inform FXOpen customers regarding prohibited transactions commonly known or referred to as “wash trades”. This prohibition is issued in compliance with AML/CFT Act in order to detect, mitigate and manage the potential ML/TF risks faced by FXOpen.
his rule requires that all orders be entered in good faith for the purpose of obtaining exposure to and gaining profit from movements in quotes on financial instruments.
No Customer shall open opposite positions (i.e. place buy and sell orders), either directly or indirectly, in the same financial instrument, where the intention of the Customer is to avoid taking a bona fide market position exposed to market risk, rather than to generate profit arising out of speculative activity.
It is also impermissible to open opposite positions in the same financial instrument for different eWallets with common beneficial ownership (which includes accounts with less than 100% common ownership) as well as for eWallets held by affiliated or related in any possible way Customers, that are entered with the intent to negate market risk or price competition. Such activity shall also be deemed to violate the prohibition on wash trades.
The fact that there is a delay between the entries of opposite positions does not eliminate this prohibition exposure if the execution achieves a wash result. Simply ensuring that there is a delay between the entry of the buy and sell orders may not, depending on the terms of the orders, preclude the orders from trading in whole or in part against each other. To the extent that the orders match with each other, the result may be deemed an illegal wash trade irrespective of the fact that the orders were entered at different times.
In all cases where any of the mentioned is detected FXOpen may execute any of its rights as per the respective Customer Agreement which was expressly accepted by the Customer as part of the account opening procedure including but not limited to: cancel or adjust the respective transactions of the Customer.