Money laundering is the process by which some individuals, companies, or entities attempt to hide the origin of funds obtained through illicit activities. The objective of money laundering is to make illegal money look legitimate so that it can be used in the financial system without arousing suspicion.
Origin of the term
The term “money laundering” was born in the United States in the 1920s, during the era of the famous gangsters, who established networks of dry cleaners, with which they converted “black money” into legal money. The purpose of these dry cleaners was not to make money but to introduce money from criminal operations to the economic activity of the country.
Money laundering methods
In money laundering, unscrupulous people use different methods and ways to convert their resources into “legal and circulating” money: the most common methods are:
Fictitious benefits: Present false benefits through the creation of companies, making use of “front businesses” or “briefcase companies.”
Purchase of goods: This happens when purchases are made for higher values than the market price and then proceed to sell at a lower price to obtain the “losses” of money.
Origin of the capital: At this point, it may be that the money comes from criminal activities (drugs, arms trafficking, human trafficking, etc.) or that the capital comes from the non-declaration of legal economic activities.
Measures taken by Pilsenga
The following are some of the measures taken by Pilsenga to combat money laundering.
Prevention and training program
Through a prevention program, Pilsenga seeks to optimize the company’s standards to avoid money laundering. This system is in line with the risks posed by the location, size, nature, and volume of financial services provided by the company. Some examples or points of such a program are:
● Incorporate policies, internal controls, and procedures designed to comply with established regulations.
● Assign an officer/manager to assume responsibility for monitoring compliance with the program.
● Educate and train staff in the detection of suspicious or illicit activity.
● Provide for independent review to monitor and keep the program current.
Risk Assessment
Pilsenga creates a risk assessment to avoid money laundering. To do this, they identify the company’s products, services, customers, transactions, and geographic locations. They then analyze the data to improve their risk assessment and identify elements that could support money laundering.
Regulated service and virtual asset law
When relying on Pilsenga services, you should be aware that you are using a regulated service that also performs under the best practices for the financial industry according to FCA (Financial Conduct Authority) regulations and standards for e-money institutions. All Pilsenga’s activities are regulated by the Financial Crime Investigation Unit of Lithuania (IFU/FNTT) as exchange trading services.
Relationship between Pilsenga and the customer
Pilsenga aims to maintain a transparent relationship with its customers to meet industrial standards and regulations. When engaging with Pilsenga and using its platform and services, customers/users must be willing to cooperate with any supervisory or regulatory authorities, officers, and employees of Pilsenga who are authorized to request all relevant documentation if necessary. It is important to note that if there are suspicions of fraudulent use of an account, the user must provide the required information and all the essential facilities.
Reloading funds in accounts
When Pilsenga’s customers reload their accounts, the company requests to achieve this procedure through a debit card that is registered with the same name and address as their account and a financial institution that complies with the regulatory standards of the European Economic Area (EEA) must issue this card.
If the transaction (recharge) is made through a bank transfer, the account from which the funds come must be issued by a credit institution that complies with EEA regulatory standards, as well as be registered with the same name and address as the customer’s registered name and address. It is important to note that Pilsenga may at any time request further documents from the user in addition to verifying the source of funds.
Constant validation of documentation
To avoid money laundering, Pilsenga requests its new clients/users to provide the necessary information about their company and to attach relevant business documentation, especially to Access Pilsenga’s platform or services.
It is essential to note that Pilsenga offers dedicated client managers who provide the necessary information and assist new clients during document consolidation, legality verification, and verification of the origin of the company’s capital.
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