The Russian association of Forex dealers (AFD) has identified some companies located in Moscow’s financial district as illicit providers of forex trading services. The self-regulatory organization (SRO) claims to possess phone conversations recordings which are exposing allegedly criminal acts on part of the firms.
The news follows up on the latest developments in Russia: back in December, the local central bank cornered the retail market into the hands of local banks operating across the country. At the time Finance Magnates broke the news that Russian authorities have stripped independent brokers of their licenses.
Provided that the AFD’s information is accurate, the firms operating from within the financial district of Moscow have been running a very high-risk operation. The Russian government has repeatedly stressed its position against the industry. Back in the final days of last year, the Bank of Russia abruptly changed the regulatory landscape for the industry.
Moscow City Operation
The operatives commissioned by the AFD to investigate, claim to have identified several financial firms operating from the “Moscow City” district, which were soliciting Russian citizens to illegally trade forex. The press bureau of the industry body of licensed forex brokers in Russia also states that some companies have also been engaged in providing Cryptocurrencies and CFDs.
The operations of the firms are stated to have been masked as consultation and education services. A company called “International Financial Center (“Международный Финансовый Центр”) has been involved in the provision of forex brokerage services without the appropriate license from the Bank of Russia.
The firm is said to be an affiliated entity of an international company called Global FX. The AFD elaborated that the illegal broker is using aggressive sales tactics to onboard new clients. Global FX is also said to have been soliciting Russian citizens to open accounts outside of Russia.
A firm called "Global Finance," has been positioning itself as a consulting agency, which is actually aggressively onboarding unsophisticated clients to trade forex and CFDs. The AFD didn't specify how many other companies have been operating from the Moscow City district.
FX Open Markets Limited has also been singled out by the Russian regulator as a company that is also allowing customers to deposit via electronic payment systems. The AFD states that the firm was also offering clients to invest in a high-risk PAMM account.
“The SRO AFD is concerned with the fact that companies which are not licensed by the Bank of Russia are providing their forex trading services to Russian citizens,” the AFD outlines. In addition, the industry body claims to possess phone conversation recordings with representatives from the said companies which are providing the wrongdoing.
