Money laundering is the act of transforming money or other money obtained as a result of any illegal activity, in money or investments that appear legal, so that their illegal source cannot be traced.
Procedures & Methods
The purpose of a number of measures and procedures to counter money laundering, which use Internet banking to solve certain problems, is a guarantee that customers who use online banking services do so in accordance with legal standards. This minimises both personal risk as well as the risks of law-abiding customers to be involved in the illegal actions of third parties.
To minimise the risks associated with money laundering and financing of terrorist activities, Internet banking categorically does not accept sending payments via third parties. Each client, for which his own account is fixed, using only his own funds, whether it be accounts for electronic payment systems, bank accounts, credit/debit cards etc. Online banking incurs the bank the right to refuse to conduct operations at any stage, in case of the assumption that a transaction is linked to money laundering.
Adhering to the “Know Your Customer” policy, banks have the right to identify the client’s staff in the online system. In this case, the client must provide two documents detailing:
Having passed the identification steps, the account status is automatic, and the client then holds the opportunity to use all the functions of the Internet banking system. To prevent the compromise of personal data, the client downloads documents and information using a secure HTTPS protocol.
Obligations of the service provider to comply with the anti-money laundering policy: