Money Transactions: How to Comply with the New Regulations

Recently the US government has passed legislation that provides guidelines for anti-money laundering procedures and acceptable methods for transferring money into and out of various types of investment companies. The MG Financial Group (MG) is a registered Futures Commissions Merchant, and as such is required by the CFTC and the NFA to abide by these guidelines. To help you understand how you can move money into and out of your trading account with us, we have outlined some of the procedures below.

MG may accept customers' funds for deposit into their account only in the form of a wire transfer, personal check, cashier's check, or bank draft. MG will not accept cash, money orders, travelers' checks, Western Union transfers, transfers from exchange houses, or any other form of cash deposit. Funds that are deposited in cash will not be accepted and will not be deposited to MG live trading accounts.

For credit to a customer's trading account, please note that MG only accepts funds that arrive by wire transfer or check drawn on the account holder(s) account at a bank or other regulated financial institution of the type enumerated under the Commodity Exchange Act. Should an account holder(s) choose to fund their account from one of these other regulated entities (not from a bank account), MG must first receive proper authorization from that entity to transfer those funds to MG.

Authorization forms are available on MG's website:

To transfer funds from a properly authorized institution to your MG trading account, Click Here.

To transfer funds from your MG trading account to another properly authorized institution, Click Here.

For Individual Account Holders - only the person who is approved to become a client can fund the account.

For example, if Herbert Franks is approved to open an account, then MG will deposit funds in Herbert Franks' trading account only if they are sent from an account in the name of Herbert Franks at a properly authorized institution. Funds from Herbert Franks' company, wife, friends, children, parents, etc. will not be accepted.

For Joint/Partnership Account - Funds may be deposited by any one of the account holders to a joint account in our trading system. When funds are to be withdrawn from a joint account they can either be paid to a joint account with the same exact names of the account holders at a bank or otherwise approved financial institution - or - they may be paid back to the account of the original depositor (who must also be one of the account holders). For all accounts where 2 or more parties are listed as the account holders, MG requires each of the owner's approval (in the form of their signatures on the Withdrawal Request form) in order to process any requests.

For example, let's say 3 parties collectively open a Joint account: Edwin Chang, Mary Smith and Walter Schmidt. If Edwin Chang were to send funds from his personal individual account for deposit in this joint account, then when funds are withdrawn they may be paid to: 1) an account in the name of Edwin Chang, and Mary Smith and Walter Schmidt or 2) they may be paid back to Edwin Chang's original bank account. As mentioned above, all three parties have to sign the withdrawal request form, and from time to time, one (1) form of photo identification may be requested for each party member as well.

If Edwin, Mary, and Walter do not have a joint account in a properly authorized institution, then a check payable to all of their names can be issued and their bank will cash it, provided all 3 parties endorse the check.

The Corporate Account - MG will accept funds for deposit to a corporate account only from a properly authorized account under the name of the Corporation. The funds of that Corporation can be returned to the same account (under the Corporation's name) upon receipt of the properly signed withdrawal request.

Please keep in mind that the owner of the Corporation cannot fund the account from his/her personal account, nor may funds be paid to an individual. The Board of Directors of the Corporation must issue resolutions to advise MG about the bank accounts and deposit and withdrawal authorizations. These resolutions are filled out at the time of application for a live forex trading account.

These articles are designed to help traders understand the unique benefits of trading with DealStation. Articles contain hypothetical examples that have been created for illustration purposes only. As always, we welcome your feedback on this and other Educational Articles. If you’d like to submit an idea for an upcoming article, please send an email to service@mgforex.com. For a complete list of Educational Articles, please visit our archives.

MG Financial Group, and any of its affiliates, will not be held responsible for the reliability or accuracy of the information available in this article. The content provided is put forward in good faith and believed to be accurate, however, there are no explicit or implicit warranties of accuracy or timeliness made by MG Financial Group or its affiliates. The reader agrees not to hold MG Financial Group, or any of its affiliates, liable for decisions that are based on information from this article.