The Cyprus Securities and Exchange Commission (CySEC) has announced its decision to withdraw the CIF license of FXBFI Broker Financial Invest Ltd. This decision followed a series of enforcement actions against the company in the recent past.
In June, CySEC took action against FXBFI for alleged lapses in adhering to anti-money laundering and terror financing prevention requirements. The regulatory body found that the company had failed to implement adequate policies, controls, and procedures to mitigate and manage the risks associated with money laundering and terrorism financing. The fine was imposed against FXBFI, which operated 101investing after the latter disappeared from the financial landscape.
CySEC's Fine against FXBFI
In its notice, CySEC pointed out: "The Company did not apply adequate and appropriate policies, controls, and procedures, so as to mitigate and manage the risks of money laundering and terrorist financing effectively, in relation to the detailed examination of each transaction which by its nature may be considered to be particularly vulnerable to be associated with money laundering offenses or terrorist financing."
This was not the first time FXBFI has found itself in trouble concerning CySEC's regulations. In October of the previous year, the brokerage operator had to pay €150,000 to settle potential violations of Cyprus' financial regulations. The investigation also probed into compliance regarding client reporting and remuneration.
Resolution of Alleged Violations
In its official statement, CySEC announced: "A settlement has been reached with the CIF FXBFI Broker Financial Invest Ltd for possible violations of the Investment Services and Activities and Regulated Markets Law of 2017 and the Directive of the Cyprus Securities and Exchange Commission for the Prudential Supervision of Investment Services Firms."
101investing, under FXBFI's operation, held the Cyprus Investment Firm (CFI) license, that enabled it to offer trading services across the European Economic Area (EEA). However, following the UK's exit from the European Union, the broker ceased providing services in the region.
CySEC's registry revealed that FXBFI obtained its operational license in September 2016. However, it had voluntarily surrendered this authorization and was under regulatory scrutiny.
