Compliance

 

  • Compliance Overview - Why do we do compliance?
  • Compliance Flow - What is the process from time of deposit?
  • Compliance and Risk - Why is compliance important to risk?
  • Compliance Documents - What documents are needed?
  • Compliance and Banking - What is the relation between banking and Compliance?
  • Compliance Back Office - How do we maximize back office tools for compliance?
  • Compliance Call Script and Objections - What communication structure do we use for compliance?


Compliance Overview - Why do we do compliance?

In the international financial industry today businesses need to work within a guideline in order to protect themselves from risk and uphold a standard of AML (Anti Money Laundering) through KYC (Know Your Customer) tools. It is for these reasons that we follow a compliance procedure and one of the major KYC tools is compliance.


Every Time a client makes a deposit there is a risk that the funds have been processed through fraudulent means or that the depositor will retrieve the funds back through fraudulent means. Fraud can include many things such as the use of a third party card without their knowledge or underage traders attempting to trade illegally. More sinister fraud such as attempts to commit money laundering through the use of fraudulent accounts by unscrupulous traders or attempts to charge back funds that have already been traded are also cause for concern.


The compliance procedure is in place to combat all of these risk factors. If used correctly, the compliance procedure will help you to identify any possible attempts at fraud, protect you against any indemnity claims through fraudulent means and reduce the risk to your business.



To streamline the compliance process, Backpack has designed a unique back office compliance system which works independently but parallel to the sales and retention system. This allows the compliance function to operate optimally in conjunction to the sales function without interference between the two.



Through simple, effective steps on the compliance tab you are able to create a snapshot of the users compliance status, request specific actions and follow the overall progress of the compliance function.  


 

Compliance Flow - What is the process from time of deposit?

This is the basic flow of the compliance procedure from the clients first deposit.



 

  1. Deposit is Made by the user through his platform and a deposit line is created for the deposit in the back office in the Payment Options Log  report.
  2. The Deposit is checked to see if it is a First Deposit or an Additional Deposit.
  3. If it is a First deposit then you can  Assign Compliance to the compliance officer to request the documents according to the size of the deposit and then update deposit line on the Payment Options Log report as “done”.
  4. If it is an Additional Deposit then you can check the compliance tab to see if we require outstanding or additional Documents and any requirements can be updated according to the the amount of total deposits. If needed, you can Assign Compliance to the compliance officer to request any outstanding documents and then Update the deposit line on the Payment Options Log report as “done”.



Compliance - Suggested Daily Duties Flow

 

  1. Check Deposits on the Payment Options Log
  2. Check emails and upload any documents received to the CRM
  3. Check Files
  4. The compliance officer will call the clients that are assigned to him for that day. The Compliance leads are filtered from the “All Leads” report by name and date.
  5. The compliance officer will update the Compliance Notes in the Compliance Tab of the clients account using the type “validation”. The result of the call and any relevant action taken is noted. The validation date is changed to the date of follow up.
  6. If there was no connection telephonically with the client the compliance officer will send an email using Compliance Email Templates to the client requesting the validation documents.


How to check Deposits

 

  1. Click on the reports icon
  2. Click on Payment Options Log to open the list of payments
  3. Clear the “From GMT” date
  4. Select “new” from the dropdown list under the Compliance heading
  5. Select “Approved” from the dropdown list under the Status heading
  6. Begin with deposits from the bottom of the page (older) and work upward
  7. Click on the User ID
  8. Click on the Banking Tab
  9. Check if it was a First Deposit. To identify if it was a First Deposit you will see a “Deposits Count” = 1 and the “First Deposit Date” will correspond with the “Last Deposit Date” and the “First Deposit Amount” will correspond to the “Deposits Volume”. Follow the First Deposit procedure.
  10. Check if it was an Additional Deposit. To identify if it was an Additional Deposit  you will see a “Deposits Count” > 1 and the “First Deposit Date” will be different to the “Last Deposit Date” and the “First Deposit Amount” will differ from the “Deposits Volume”. Follow the Additional Deposits procedure

 


First Deposit Compliance Procedure

Check deposit amount.
Deposit < $1000.
Deposit > $1000

 

Deposit < $1000

 

  1. Click on the Basic Info Tab
  2. Check that the client has completed the “Date of Birth” and “Name”. This is important because these details are required to validate his ID documents.
  3. Check if the client is Frozen. This is important because it is a priority to inform a client quickly of the validation requirements in order to unfreeze his account for trading.
  4. Click on the Files Tab
  5. Check if the client has uploaded any files to his account.
  6. If the client has uploaded any documents to the account then open and Validate the documents
  7. If the client has not uploaded any documents then you can request a copy of a valid ID. Please see the Validate the documents section for more detailed requirements
  8. Click on the Compliance Tab
  9. Select  “Validation” from the Type drop down menu
  10. Type the Validation Notes in the message box and select the check boxes described in Compliance Tab  which will indicate the validation status of the client. The notes should include any action you have taken regarding validation of the account as well as any follow up requirements.  
  11. If you will Assign Compliance to someone for follow up then select a date for the follow up by clicking on the date selector next to “Compliance”
  12. Click Submit

 

Now Assign Compliance

If the client was validated then Unfreeze*** his account by clicking on the Basic Info Tab, clicking on edit next to frozen and selecting “no” from the drop down list. Now send the client the validation success email from the Email Template drop down list by selecting “Validation Success” and clicking send


If the client was not validated then send him the Documentation (email requests ID only)  Email Template from the drop down list by selecting Documentation and clicking send



*** NB : Accounts that have not been validated are automatically frozen after 2 trades. The trigger for this is the check box  “Documents Verified” on the Compliance Tab. “Documents Verified” needs to be checked when you unfreeze the clients account otherwise the account will be frozen after 2 trades again.


 

Deposit > $1000

 

  1. Click on the Basic Info Tab
  2. Check that the client has completed the “Date of Birth” and “Name” and “Address”. This is important because these details are required to validate his documents.
  3. Check if the client is Frozen. This is important because it is a priority to inform a client quickly of the validation requirements in order to unfreeze his account for trading.
  4. Click on the Files Tab
  5. Check if the client has uploaded any files to his account.
  6. If the client has uploaded any documents to the account then open and Validate the documents
  7. If the client has not uploaded any documents then you can request a copy of a valid ID, Utility Bill and the front and back of the Credit Cards he used to make the deposits. Please see the Validate the documents section for more detailed requirements
  8. Open the transaction information page of your payment processor and check the details  of the credit cards that were used to make the deposits on the account. Please note that you will need to request copies of all of the cards used on the account. You will need to note the last 3 digits of each card number in order to request them.
  9. Click on the Compliance Tab
  10. Select  “Validation” from the Type drop down menu
  11. Type the Validation Notes in the message box and select the check boxes described in Compliance Tab  which will indicate the validation status of the client. The notes should include any action you have taken regarding validation of the account as well as any follow up requirements.  
  12. If you will Assign Compliance to someone for follow up then select a date for the follow up by clicking on the date selector next to “Compliance”
  13. Click Submit

 

Now Assign Compliance

If the client was validated then Unfreeze*** his account by clicking on the Basic Info Tab, clicking on edit next to frozen and selecting “no” from the drop down list. Now send the client the validation success email from the Email Template drop down list by selecting “Validation Success” and clicking send



*** NB : Accounts that have not been validated are automatically frozen after 2 trades. The trigger for this is the check box  “Documents Verified” on the Compliance Tab. “Documents Verified” needs to be checked when you unfreeze the clients account otherwise the account will be frozen after 2 trades again.