OctaFX has responded strongly by denying the allegations of money laundering against it brought by the Indian authorities and calling the accusations of chart manipulation "baseless." The broker shared the response exclusively with Finance Magnates after its offices in India were raided by the Enforcement Directorate, the local investigative wing that handles money laundering probes.

Actions against OctaFX in India

The Indian law enforcement raided OctaFX premises in four top-tier Indian cities and froze bank accounts with funds of about $324,000. Furthermore, it seized various documents and other digital devices.

The broker defended itself, highlighting that: "It is a global licensed broker that fully complies with strict international Anti-Money Laundering (AML Anti-Money Laundering (AML) Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Anti-money laundering (AML) is a term that describes laws, processes, and regulations that are intended to prevent illegally obtained funds from being disguised as income gained through legitimate means. The fundamental purpose of the AML laws is to help safeguard, detect, and report suspicious activity including the predicate offenses to money laundering and terrorist financing, such as securities fraud and market manipulation.Most exchanges have AML measures that include identity verification Read this Term) regulations to prevent malicious activities and secure customers' funds."

The actions against the broker came after complaints from "several persons for their involvement in showing false temptations of high returns and duping persons under the guise of forex trading." The allegations included that the broker collected the deposits in multiple bank accounts and "manipulated trade activities and information shown on its platform, ultimately resulting in a net loss to the traders."

According to Indian authorities, OctaFX generated over $59.9 million in profits from the Indian region and laundered a portion of it outside the country. The authorities also alleged that a network of chartered accountants and professionals were involved in making fake certificates of remittances and facilitated bank accounts/companies for the layering of funds. However, OctaFX "strongly denies any money laundering allegations."

Additionally, the Indian authorities alleged that OctaFX's operations in India are managed by the owner of OctaFX group entities based in Spain, Russia, Georgia, and Dubai. The law enforcement officials pointed out that OctaFX "hired several Indian individuals working in Spain and Russia for operating the OctaFX trading platform and inducing Indian citizens to invest in forex trading through OctaFX." However, the matter is still under investigation.

OctaFX offers leveraged trading services with forex and contracts for differences in other asset classes, including shares, indices, and cryptocurrencies. According to local authorities, the platform operates in India without authorization from the central bank to deal in forex trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term.

OctaFX’s Response

Upon inquiry by the Finance Magnates, OctaFX provided the following statement:

Recently, allegations have surfaced in relation to an investigation regarding Octa (www.octafx.com) launched by Indian authorities. Therefore we’d like to shed light on the situation and rebut the misleading information posted by some websites.

Octa (ex. OctaFX) has a proven track record in financial services since 2011. For 12 years, we have been ensuring transparent trading conditions for our clients without resorting to any hidden charges or unclear terms. Hundreds of thousands of satisfied clients worldwide that have been trading with us for years are the main evidence of the high quality of our services.

Octa is a global licensed broker that fully complies with strict international Anti-Money Laundering (AML) regulations to prevent malicious activities and secure customers' funds. We track and detect our clients' and partners' operations that may potentially violate such regulations, and we take strict measures to combat fraudulent activities and money laundering. Thus, we strongly deny any money laundering allegations.

The accusations against Octa related to chart manipulations are also baseless. Like any other broker in the industry, we function as an intermediary between financial markets and traders who, in turn, opt for Octa as their platform of choice due to its safe trading environment, among other reasons.

With regard to our clients from India, we want to assure them that all our services are fully available to them free of changes. Deposits and withdrawals are processed securely in the usual mode. Octa always remains on the side of our customers and guarantees that all their funds are protected.