CySec beats FxPulp to a pulp! Four directors issued an unusually high 150,000 EUR fine

The directors of the ominously named and defunct Cyprus-based FX firm FxPulp have been fined an unusually high 150,000 euros by Cypriot regulatory authority CySec. CySec, usually notorious for its ‘flexible’ regulatory stance and relatively low levels of interference with the activities of FX brokerages which make up a sizable proportion of Cyprus’ economic contribution, […]

The directors of the ominously named and defunct Cyprus-based FX firm FxPulp have been fined an unusually high 150,000 euros by Cypriot regulatory authority CySec.

CySec, usually notorious for its ‘flexible’ regulatory stance and relatively low levels of interference with the activities of FX brokerages which make up a sizable proportion of Cyprus’ economic contribution, has most certainly made an example of these particular individuals in this case.

Directors of Pulp International Business Ltd Mr. Said Salem, Mr. Shaher Hasanain, whose business was largely aimed at the Middle Eastern market rather than the more regulation-conscious European client, are subject to the fiscal penalty. Additionally, non-executive directors Mr. Savvas Savva, Mr. Marios Economou, have been the subject of a reprimand.

In February this year, CySec suspended the license of FxPulp, giving the firm 10 days effective from February 18 to resolve matters relating to laws that cover the safeguarding of client funds, as well as the company’s procedure relating to prevention and suppression of money laundering and terrorist financing laws that all brokers must adhere to.

In April, CySec revoked the company’s license, and has now sought to penalize the firm under the directive DI144-2007-01 which covers the authorisation and operating conditions of Cyprus Investment Firms.

In recent years, fines issued to Cyprus FX firms have rarely exceeded 10,000 Euros, let alone run into six figure amounts such as in this instance, marking it out as a very unusual case. In addition, Mssrs Salem and Hasanain have been banned from operating in the financial industry in Cyprus for 5 years.

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