Russian c-bank detects 81 illegal Forex dealers in H1 2019

Maria Nikolova

Some 38 of these companies targeted Russian clientele from abroad, Head of the Bank of Russia’s Department for Countering Malpractice told TASS in an interview.

The Central Bank of Russia has detected 81 illegal Forex dealers (the official designation of OTC FX brokers in Russia) in the first half of 2019. The data was provided by Valery Lyakh, Head of the Bank of Russia’s Department for Countering Malpractice, in an interview with Russian information agency TASS.

Mr Lyakh explained that, out of these 81 entities, 38 were operating from abroad. They targeted Russian-speaking clientele via their websites.

The fraudulent schemes remain the same – the companies pretend to be active in the FX market, they falsely claim that clients have profitable accounts, but when one decides to withdraw one’s money, the account gets blocked or shows a zero balance. Then the company stops responding to the clients’ phone calls.

During the first quarter of 2019, the central bank received 69,600 complaints about clients of financial services providers, a number which is 2.2% higher than in the corresponding period a year earlier. The main reasons for the rise include an increase in the number of complaints about credit providers.

Regarding the enquiries concerning financial market participants, a group which includes Forex dealers (the official designation for OTC FX firms in Russia), the number of complaints regarding such entities was not significant in the first quarter of 2019. These amounted to humble 370 complaints. Of the total, complaints about Forex dealers accounted for 9%.

The small number of complaints about Russian FX dealers, however, may hardly be seen as an indicator of the health of the Russian Forex industry. Especially as the number of entities offering Forex services in Russia without a license remains substantial. Let’s recall that, in March this year, the Russian Association of Forex Dealers, a self-regulatory organization for the FX industry in Russia, has detected a number of illegal Forex entities operating from the “Moscow City” finance center.

Read this next

Digital Assets

Kraken signs commitment to launch regulated business in Canada

San Francisco-based cryptocurrency exchange Kraken has filed a pre-registration undertaking with a Canadian provincial regulator as it works towards becoming a regulated provider in the country.


TT’s Keith Todd brings fixed income and cybersecurity to FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Keith Todd about Trading Technologies’ move to fixed income after nearly 30 years of existence. TT is also proposing cooperation and transparency among competitors to tackle cyber risks.

Digital Assets

Binance joins FIDO Alliance to enhance user security with introduction of passkeys

“With passkeys, a user can quickly and safely sign in across multiple sites, apps, and devices with local biometric authorization. Binance will offer users a more secure and streamlined experience using passkeys on our platform without compromising on security”.

Digital Assets

ipaymy taps TripleA in Singapore for rent, invoices, taxes, salaries in Crypto

“Our white label crypto payment solution enables our partners to reap the benefits of accepting crypto payments, without managing crypto on their balance sheets. This makes it an ideal solution for businesses looking to offer cryptocurrency payments volatility-free.”

Industry News

London and New York rank joint first as top financial centers, according to…London

“The UK remains one of the most open and global financial centres with better access to international markets than the US, France, or Japan. But our competitive advantage is at risk.”


Sterling Trading Tech (STT) discusses their Risk & Margin System at FIA Boca 2023

FinanceFeeds Editor-in-Chief Nikolai Isayev spoke with Chief Customer Officer Keith Cacciola and Managing Director of Business Development Andrew Actman about STT’s competitive advantages, the challenges their clients face today, the firm’s product roadmap and new leadership at STT.

Institutional FX

Swedish online brokerage pioneer Nordnet deploys Citi Securities Lending Access platform

“Nordnet was one of the first online brokers in Sweden and has since expanded into a pan-Nordic leading digital platform for savings and investments. We are proud to add this collaborative initiative to our ever-growing list of market innovations for our customers.”

Digital Assets

Elwood integrates Fireblocks to further connect digital asset ecosystem

“As a first port of call, the integration of Fireblocks will enhance the portfolio management system experience for clients, providing users with a comprehensive view of their current and historical digital asset positions across all venues, including their Fireblocks movements and balances.”

Industry News

OKX to open office in Australia, starts rivalry with Kraken in Formula 1

“Our ambition is straightforward – to become the leading crypto platform in the world. We see Australia as an indispensable part of this strategy and a key growth market.”