NFA takes a parting shot at Forex Club - fines it $300k

Busy week for the NFA after it charged FXDD for administrative violations today it couldn't resist and took a parting shot at Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Club - who gave up on its forex license few months ago anyway. The NFA charged and simultaneously settled its charges with Forex Club for administrative violations - details found below. It's no wonder the fine is small - Forex Club didn't want to pay high lawyer fees and keep fighting the NFA - looking to put the whole American adventure behind it. NFA had to show that after two years spent at Forex Club's offices it found a little something.

COMPLAINT:

On October 25, 2012, NFA issued a Complaint charging FX Club with failing to maintain adequate books and records; failing to maintain adequate internal controls and financial records; failing to maintain an adequate anti-Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term program; failing to file timely and accurate trade reports; and failing to pre-submit promotional material to NFA for pre-approval prior to first use. The Complaint also charged FX Club and Tatarnikov with failing to diligently supervise FX Club's operations and personnel.

DECISION:

On October 25, 2012, pursuant to a settlement offer submitted by FX Club and Tatarnikov, FX Club was ordered to correct all deficiencies and implement all recommendations noted in J.H. Cohn's report no later than 60 days after October 15, 2012. For each and every year FX Club is required to file a fiscal year end annual statement and submit it to NFA no later than 90 days after the end of FX Club's fiscal a statement prepared by any independent public account who is registered under the Sarbanes-Oxley Act with the exception of the fiscal year 2012 financial statement, which must be prepared and certified by a Sarbanes-Oxley Act approved accounting firm with whom FX Club has never before done accounting or consulting work. In addition, FX Club and Tatarnikov were ordered to pay a $300,000 fine within 30 days of the effective date of the Decision.

Complaint:

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Decision:

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