Forex regulators are on a roll. Whether it is just more frauds now than ever or the officials getting busier, at least three forex-related legal breaches were exposed last week.

Forex regulators are on a roll. It was just three days ago that we spoke about tightened regulation in forex industry. We don't know whether it is just that there are more frauds now than ever or is officials getting busier, but at least three forex-related legal breaches was exposed last week.

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US CFTC is looking to retract the registration of Introducing Broker iFinix Futures, Inc, a registered independent introducing broker based in New York. Last year, it has imposed a permanent ban and $1,260,000 fine against iFinix on accusation of providing falsified bank account documents to the NFA (National Futures Association) in order to conceal its inability to meet minimum capital as required. Meanwhile, CFTC is already revoking registration of two companies accused of forex fraud, that is forex company Veruus Wealth Management LLC and commodity pool operator Arista LLC. US courts has found them liable to the charges.

In the neighboring country, Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) released a statement on fines imposed to forex broker Questrade on violation of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, as well as the Proceeds of Crime (Money Laundering) and Terrorist Financing Regulations. In essence, Questrade was accused of having poor anti money laundering procedures. Therefore, on 2011 Questrade was fined $346,140. According to forexmagnates, the fine is one of the first issued to a financial services broker for such actions. We think it underlines just how tight regulations are in North America for brokers nowadays.

On another part of the world, Malta Financial Services Authority (MFSA) has recently published a warning against dealing with ABFX Ltd that operated through www.alphabetafx.com. ABFX previously claimed to be licensed by the Maltese regulator, but MFSA stated that they have never given ABFX any licenses; it is not even registered in Malta. This reminds us of 4XP-BVI FSA episode on October 2013. It is quite surprising that such companies were recklessly claiming to be regulated, when technology have made sure that the truth would be quickly out.

 

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