After the promulgation of the two high courts and one law, the criteria for determining "serious circumstances" of money laundering crimes were clarified, and we need to pay special attention to the issue of withdrawals.
Previously, the biggest risk of withdrawing cryptocurrencies was freezing your card or confiscating your funds.
But now, not only will your bank card be frozen, you may also be convicted of money laundering.
After the new regulations are introduced, the following two aspects need special attention regarding the issue of deposits and withdrawals: the first is the obligation to guard against funds during the withdrawal process, and the second is the importance of the transaction contract.
1. How do we identify black money? How do we prevent receiving black money?
First of all, during the withdrawal process, you need to fulfill your obligation of care in protecting the funds that matches your ability to understand.
Simply put, it is necessary to carefully evaluate the source of funds and background of the counterparty.
If it is determined that you know or should have known that the money came from an illegal source, then your card may be considered a recipient of stolen money, and the money will also be defined as stolen money in your card. Secondly, even if you believe that the other party's funds are clean, you must sign a detailed transaction contract. The transaction records and identity information in the contract will become important evidence of your fulfillment of your duty of care.
When the case officer asks you, "How do you prove that you have fulfilled your duty of care in the fund audit?"
You might answer: "That person is very rich and is our local entrepreneur, so I think his money is clean." This reason is obviously insufficient.
To give another example, an OTC said that he believed the merchant’s funds were clean because a guarantor told him that if there was a problem with the funds, the guarantor would compensate him.
However, this guarantee liability only takes effect when you have problems and your card is frozen, and does not mean that you are exempt from the obligation to review the source of funds.
Even if you have received a commitment from the guarantor, you still need to conduct a strict review of the source of funds. Otherwise, once you receive the stolen money, the law will still hold you accountable for whether you knew or should have known that the funds were illegal.
So what is stolen money? How is it different from regular money?
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In theory, stolen money must be obtained through definite illegal crimes, and then the funds are circulated in the market.
If it is determined that you know or should have known that the money came from illegal sources, then your card becomes a receiving card for stolen money, and the money is once again defined as stolen money in your card.
So how do you determine whether there is a problem with the other party's source of funds? In fact, it is very simple. You need to carefully evaluate the source of funds and background of the other party.
If the buyer provides detailed identity information and transaction records and can prove the legal source of funds, the risk will be greatly reduced.
2. How to make safe deposit and withdrawal operations?
First of all, we need to make it clear that no one can guarantee 100% safe withdrawal.
This is because, from an objective point of view, when you receive a bank transfer, as a normal person you have no way of fully understanding where the money came from.
It is even more impossible for you to know the source of funds of the person who sent you the money, and you can't even trace it back to the source of funds further upstream. Even the anti-money laundering department of the bank cannot fully grasp the transaction purpose behind each fund.
The so-called "stolen money" is identified because the victim reported it to the police. If the victim did not report it, you would have no way of knowing whether the money was involved in a crime.
Therefore, when you are on one side of the transaction, you cannot be sure whether the other party's funds are clean. If you really want to completely avoid this risk, the only way is to thoroughly understand the source of the other party's funds. For example, if someone just sold a house and you saw the buyer pay a sum of money. Based on common sense, this money is likely to be legal.
If this person uses this money to buy U from you, your transaction with him is likely to be safe. But this situation is rare.
When the source of funds cannot be guaranteed, most people will choose the following three withdrawal methods: cash trading, over-the-counter trading, and on-site trading. Let's analyze their advantages and disadvantages one by one:
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1. Cash transactions
The advantage of cash transactions is that the probability of the investigating agency tracing you is relatively low, because you withdraw cash through an ATM, which disconnects the capital chain.
In order to track you down, the investigating unit needs to first lock the ATM machine, find the person who withdrew the cash, and then find his counterparty through the person who withdrew the cash, before they can finally trace it back to you.
But the disadvantage of cash transactions is that once the investigating unit identifies the person who withdraws cash through the ATM and finds you as the downstream transaction partner, you will no longer be able to defend yourself by saying you were "ignorant".
Using cash transactions may be considered as an intention to "evade detection", which will increase your legal risk. Once discovered, you will be considered to have a duty of care of "knowingly and should have known" and may be involved in the case.
2. OTC
The advantage of over-the-counter trading is its high flexibility. You can trade directly with the other party without the need for platform review.
But the risk of OTC trading is that you cannot verify the other party’s source of funds through the platform. You may just listen to someone’s recommendation and think that the other party is “reliable”, but this does not mean that you have fulfilled your audit obligations.
If there is a problem in the transaction, the case handling unit may think that you have not fulfilled your due diligence obligations, and even if someone guarantees you, it cannot reduce your responsibility.
The advantage of on-exchange trading is that exchanges usually have some audit mechanisms, which can help you reduce the risk of receiving stolen funds.
You can check the other party's bank statements through the exchange, and verify the withdrawal status and transaction intentions. This information can prove that you have fulfilled your duty of care.
However, on-site trading is not completely risk-free, especially in some large exchanges, where the possibility of stolen money flowing in may be higher.
If you accidentally receive stolen money, although you can apply to unfreeze the funds through the exchange's records, there are still certain legal risks.
If you plan to trade on the exchange, it is recommended to choose a large exchange, such as Binance.
In the Binance exchange, it is best to choose merchants with the "Shield" logo for trading. Because these merchants have undergone strict audits and are relatively safer.
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In addition, SHIELD merchants can also provide certain compensation guarantees, but it should be noted that this compensation is conditional.
For example, after the funds are frozen for 6 months, the merchant will pay 10% of the amount, but the single compensation amount will not exceed 2000 USDT.
If you are withdrawing a small amount of cash, you can consider using a U card. There are many U cards on the market, such as MasterCard U card, DUPAY, MIPAY and so on.
Taking DUPAY as an example, you can recharge USDT to a virtual card and then make fiat currency purchases.
This card can be bound to WeChat, Alipay, Meituan, Ctrip, etc., and can be used for almost all domestic online consumption.
Its advantages are simplicity and low threshold, but its disadvantage is high handling fee, which is 2% for transferring fiat currency.
Therefore, this type of card is more suitable for small-amount purchases, especially when the purchase is below 200 yuan, there is no handling fee.
3. What should I pay attention to when withdrawing funds?
1. Reduce the frequency of withdrawals
Trying to reduce the frequency of withdrawals can reduce the probability of you receiving black money.
If you must withdraw funds, try to make large-value, low-frequency transactions and avoid frequent small-value transactions. This can reduce the risk of risk control.
2. Don’t choose quick transactions, choose optional transactions
When trading, you should choose selective trading or bulk trading, and never choose quick trading, because in quick trading, you don’t know which C2C merchant you will be matched with. The system will default to the highest price when you sell and the relatively low price when you buy. However, these two prices are often the most risky.
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3. Try to avoid transactions with merchants who have been open for a short time.
It is recommended to choose merchants that have been registered for at least 1 year, with a total transaction number of as much as possible, at least 1,000 transaction records. The higher the transaction success rate, the better, and merchants with a success rate below 92% will not be considered.
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4. Familiar merchants are given priority
Try to trade with familiar merchants or merchants with good historical transaction data.
On the one hand, this can prevent C2C merchants from being backed by overseas black capital bosses.
On the other hand, even if the C2C merchants are not the black money bosses, they may receive black money without knowing it due to their lack of transaction experience and then transfer it to you.
5. Do not trade if payment is slow
Avoid dealing with merchants with slow payment speeds. Since the processing of black money is relatively long, payment will take a long time.
Generally, if the payment has not been made within 6 minutes, and the merchant asks you to wait, you can directly ask the merchant to cancel the order. Some merchants have not paid, but they will click paid first and then ask you to wait. In this case, you can directly complain to the platform customer service and ask them to cancel the order.
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6. Video verification and evidence preservation are required
Before the transaction, it is recommended to conduct video verification with the merchant and save relevant evidence.
After you place an order on the coin purchase interface, you can contact the merchant for a WeChat video call and record the video content, including the merchant's face, ID card, and the merchant's oral statement of the legal source of funds. 7. Save transaction records
Be sure to keep complete transaction records, including bank statements, transfer records, platform order records, etc. In case of emergency, these records can be used as evidence to protect your rights and interests when necessary.
8. Separate your withdrawal card from your daily bank card
This can avoid all funds being affected. Do not use the primary card for deposit and withdrawal operations. You can use a secondary card and choose a bank with less risk control.
And try to withdraw funds during the day on weekdays, and avoid trading at night and in the early morning, which can also reduce the risk of risk control. When transferring money, do not note any keywords related to cryptocurrency to avoid attracting the attention of the bank. After the funds arrive, do not withdraw them immediately, let them settle for a while, which can reduce the risk of risk control.
Summarize
The new regulatory policy makes deposit and withdrawal operations more stringent. If you are not careful, you may be involved in money laundering crimes.
When you withdraw funds in the future, you need to carefully evaluate the source of funds of the counterparty and fulfill your obligation to prevent funds. If you withdraw a large amount of funds, you must sign a detailed transaction contract and keep the evidence.
No one can guarantee 100% safe withdrawals, but these measures can effectively reduce risks and protect yourself.
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