The plot on Forex MMCIS tangle thickens. Latest report on the case in RBC, a Russian media group, revealed that Russia's central bank is unable to protect customers although there are around 50,000 Russians that might become the victims of Forex MMCIS.

The plot on Forex MMCIS tangle thickens. Previously, we have reported that Russia-Ukraine broker Forex MMCIS is in crisis, being embroiled in regulation and liquidity trouble in which they have to limit clients withdrawals. Latest report on the case in RBC, a Russian media group, revealed that Russia's central bank is unable to protect customers although there are around 50,000 Russians that might become the victims of Forex MMCIS.

Forex MMCIS

Halted Withdrawals

A few days following the announcement of anti-crisis measure that oversaw withdrawal limits for all clients, according to leaprate, Forex MMCIS canceled all withdrawals requests prior to October 27 and increased withdrawal processing time from one week to two weeks. Clients are also prevented from withdrawing more than 200 USD at a time. The management also closed customer service routes apart from email. They cited a problem with Dengi Online, a payment service facility provider, that Dengi Online has blocked a large part of Forex MMCIS corporate fund.

Contacted by RBC, Dengi Online said that they received request from prosecutor's office in Kiev related to suspicion of illegal appropriation of funds by Forex MMCIS. Because of that, they suspended Forex MMCIS outstanding balances, and Dengi Online sent requests for documents on it and confirmation of the appointment of a new CEO in September. However, to date company representatives MMCIS, Grand Perform Limited and Eagle Cross Limited obligations are not fulfilled, Dengi Online said as quoted by RBC.

 

No Regulation, No Protection

The Russian news group also gathered information among Forex MMCIS clients, and it seems that withdrawal is not simply limited; many clients have clearly failed to withdraw their funds and customer services has so far remained unresponsive on the matter. A group of Forex MMCIS investors intend to bring their case to court due to the large amount of money they have put in. But as further confirmed by RBC, the unregulated nature of Russian forex market made it impossible for the Bank of Russia to actually check Forex MMCIS compliance with the legislation of the Russian Federation. If such regulation exists, then Russian authority might be able to take some measures, but it is impotent to do so yet.

Forex MMCIS case is the latest in the ever-growing numbers of suspected and actual fraud in Russian forex market. The country's forex industry was valued at hundreds million of dollars with numerous players both on the broker side and trader side. Some of the most well-known international forex brokers in the history of forex trading are also based in the country. Nevertheless, to date the regulation remains murky. Self regulation bodies like CRFIN are trying to monitor the industry, but they stand on no equal foot compared to government-enforced rules. Meanwhile, the new Russian Forex bill is still on postponement in Russian lower house assembly (State Duma).

 

Related Articles:

  • Safe Trading (1): Recognizing Forex Broker Scams
  • Safe Trading (2): How to Choose the Best Forex Broker
  • Safe Trading (3): How to Recover from Forex Scams