CBK To Crackdown Unlicensed Online Forex Dealers

Central Bank of Kenya Chair Patrick Njoroge has warned Kenyans from conducting business with the unlicensed and unregulated online forex dealers who, according to the Institution, are planning a massive swindling scheme.

According to CBK, the now increased online forex dealings are conducted by a web of fraudsters who, if not regulated as soon as now, many Kenyans who have enrolled in the business risk being conned.

“The attention of CBK has been drawn to the unlicensed and unregulated online forex dealers and platforms that put Kenyans at risk of losing their money,” said CBK.

CBK through its chair has advised Kenyan to always double-check the licensing status of the online forex dealers from the CBK websites to confirm authenticity.

CBK states that some of the characteristics of these unregulated fraudster dealers and platforms include, purporting to offer the best forex deals in the market, lack requisite licenses issued by CBK or Capital Markets Authority, inadequate anti-money laundering and consumer protection safeguards.

“The platforms are downloadable on Google Play and Apple App store, and aggressively market themselves through social media and mass emails,” CBK further stated.

In the event where some have already been defrauded of their cash, CBK officials said that the victims, if any already, should report their case to CBK through the Banking Fraud Investigations Unit.

CMA Chief Executive Paul Muthaura In October 2018, said he observed several individuals and entities carrying on or purporting to carry on the business of an online foreign exchange broker or a money manager without the relevant license by the Authority.

“The Capital Markets Authority (CMA) has issued only one license to EGM Securities Limited) to operate as a Non – Dealing Online Foreign Exchange Broker,” Muthaura said in a statement.

CMA has assured those in the forex business that the Authority will take necessary measure and appropriate action against any persons illegally conducting online foreign exchange trade.