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Screenshot of a breaking news alert e-mail from Q2 2017
Russia’s Commission for the regulation of relations on the financial market (KROUFR) has started publishing its own “Black List” of fraudulent investment companies, as it seeks to keep the Forex community aware of scams.
All of the companies included in the list show signs of misleading positioning – that is, the companies officially claim to be offering in trading on the Forex market or managing funds, but instead are simply using the funds of new investors to pay the returns of already existing investors.
Another distinguishing feature of the companies on the list is their aggressive marketing approach, which often implies not mentioning the risks associated with Forex trading and promising artificially high returns.
At this point, KROUFR’s “Black List” includes 10 names, which you can view below:
- Falcon-Trade Company
- Prime FMS LTD
- Panteon-Finance LTD
- Forex Trend
- Protraders Ltd
- Delston Capital Group
- 22 GROUPS LTD
- UNIX TRADE
- Leveron Worldwide Finance Group Ltd
Most of these names, such as Forex Trend, are already familiar to regulators in other countries. As Russia prepares for the bulk of the provisions of its Forex law to come into force, Forex organizations in the country are tightening up their oversight capabilities.
All of the names that are part of KROUFR’s “Black List” feature in the “Black List” of another Russian Forex organization – CRFIN.
To view the official announcement by KROUFR, along with the first version of the “Black List”, click here.