US Commodity Futures Trading Commission (US CFTC) announced filing and settlement of fines by Zulutrade on allegation of misconduct. Not long after, ZuluTrade broadcasted the news that they are establishing ZuluTrade Japan by acquiring Market Crew Investment Advisor Co. Ltd.

On 9 September 2014, US Commodity Futures Trading Commission (US CFTC) announced filing and settlement of fines by Zulutrade on allegation of misconduct by handling clients from Iran, Sudan, and Syria. However, in the same day, ZuluTrade broadcasted the news that they are expanding to Japan by acquiring Market Crew Investment Advisor Co. Ltd.

zulutradeA Screenshot of Zulutrade.co.jp Homepage

 

Soft Fines

The US CFTC fined ZuluTrade a relatively soft fine of 150,000 USD penalty and ordered it to turn back 80,000 USD profit because they are considered to fail in supervising their own business activities. As a CFTC-regulated introducing broker, ZuluTrade is supposed to enforce strict supervision and avoid doing business with persons and entities from countries that is being economic and trade sanctioned by the US. However, ZuluTrade apparently has unwittingly opened around 400 accounts for clients from such countries, notably Iran, Sudan, and Syria.

ZuluTrade also has to settle similar misconduct with US Department of Treasury's Office of Foreign Assets Control (OFAC). OFAC disclosed that ZuluTrade has agreed to pay 200,000 USD for the violation. In detail, ZuluTrade has violated the Iranian Transactions and Sanctions Regulations, the Sudanese Sanctions Regulations and and Executive Order of Blocking Property of the Government of Syria and Prohibiting Certain Transactions With Respect to Syria. According to OFAC, ZuluTrade failed to screen, and subsequently maintained accounts for over 400 persons in Iran, Sudan, and Syria, and exported services to these customers by placing FX trades via its platform.

However, Forexbrokerz mentioned that the fine is rather cheap compared to the amount of penalty paid by BNP Paribas for similar misconduct. Well, we think that the soft fine might have something to do with how OFAC sees ZuluTrade and BNP Paribas as a company, because some of the mitigating factors mentioned by OFAC in its publication is that ZuluTrade is a small company with limited business operations and has taken remedial actions.

 

Japan Expansion

Big and small is relative, but we might debate the OFAC for its opinion that ZuluTrade is a small company. Hot on the heels of the aforementioned less than favorable news, the well-known autotrading service provider announced that they have expanded to the Japanese market through the acquisition of Market Crew Investment Advisor Co. Ltd. The company was renamed as ZuluTrade Japan Co Ltd and registered under Kanto Financial Bureau (KFB) as investment advisor. Its online address could be accessed at www.zulutrade.co.jp.

zulutradeA Screenshot of Arena FX Homepage Displayed An Ad For The New Collaboration

Following the launch of ZuluTrade Japan, Tokyo-based forex broker Arena FX started collaboration with ZuluTrade from September 5th. An exclusive report by Forexmagnates pointed out that it is the first time ZuluTrade being introduced by Japanese broker.

ZuluTrade is one of the pioneers of forex autotrading. Founded in 2007, ZuluTrade automated system works as forex signal provider, as well as executing signals in forex brokers system. Over time, the brand has garnered attention among worldwide forex traders and collected numerous lead traders and followers. We could recognize expansion to Japan as a shrewd move by the company, because Japan is one of the hottest market for forex trading nowadays.