Sources: Russian Association of Forex Dealers identifies illegal FX firms in “Moscow City” center

Maria Nikolova

A number of entities not having the necessary licenses to offer FX services in Russia have been operating in the “Moscow City” finance center.

The Russian Association of Forex Dealer, 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. The report was made by Russian information agency TASS. The entities are targeting Russian clientele, offering trading in FX, CFDs and cryptocurrencies. 

The list of unlicensed entities includes “International Finance Center” (Russian name – “Международный Финансовый Центр”), which does not have the necessary license from the Bank of Russia and uses rather aggressive methods to work with investors. This entity is a partner of Global FX, an entity that does not have Russian license either and seeks to transfer Russian customers to foreign jurisdictions.

The self-regulatory organization also says the list of unlicensed entities includes some well known Russian owned firms. These firms, inter alia, offer their clients to invest in high-risk PAMM accounts.

The report by TASS is published several months after the Central Bank of Russia annulled the Forex dealer licenses of five companies, including local majors like Alpari Forex LLC and Forex Club LLC, over repeated violations of the Russian securities law. Shortly after that the Association of Forex dealers terminated the membership of five companies: Alpari Forex, Forex Club, TeleTrade, Fix Trade and TrustForex.

Russian information agency TASS has reported that the activities of the five companies that were slammed by the Central Bank of Russia were focused on aggressive advertising and withdrawing Russian clients to foreign jurisdictions. This explanation has been provided by Larisa Selyutina, Head of the Securities Market and Commodity Market Department.

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