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Screenshot of a breaking news alert e-mail from Q2 2017
Russia’s Centre for Regulation in OTC Financial Instruments and Technologies, also known as CRFIN, has been diligently performing its oversight functions of the Russian Forex market to the degree that its status of a self-regulatory organization permits. One of the main functions of CRFIN is to inform traders and investors of fraudulent projects and companies active in the Forex market so that the public can stay away from such schemes and avoid losses.
Earlier today CRFIN beefed up the Black List of such fraudulent projects with one more entry: PROM-24 (https://prom-24.com/). The company offers its clients to invest in the Forex market.
The reasons for blacklisting PROM-24 include:
Promises of artificially high and guaranteed returns: the company pledges daily return on investment of 7%.
Significant bonuses for attracting new clients – the commissions reach 10% from the sum deposited by each new client;
Lack of transparency of the business model, that is, there are no guarantees that the promised returns and the invested funds will be paid;
No information on licenses;
Misuse of banking terminology.
CRFIN warns investors to shun all companies that are part of the Black List. The most recent entries – Alfareserve and InTrade24, have already stopped working and have left their clients stranded. It is worth bearing in mind that CRFIN was amid the few to act in a timely manner and warn investors against dealing with Mill Trade and Forex MMCIS.
Meanwhile, Russia’s lawmakers are seeking to curb the activities of financial pyramids in the country. Earlier this week, the Ministry of Finance completed the work on a bill that toughens penalties for organizers of such fraudulent schemes – these individuals will face jail terms of up to 6 years and fines of up to RUB 1.5 million (USD 22,600).
The bill also envisages administrative penalties for those who present financial pyramids in a favourable way, thus attracting new clients to such fraudulent projects. The fines for such misleading advertising will reach RUB 1 million.
The entire “Black List” can be viewed here.