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US CFTC sues the offshore based forex broker JAFX Ltd.

Aug 01 2018
By
Jonathan Smith

The Commodity Futures Trading Commission (CFTC) in the US says it has filed a civic enforcement action against a offshore based broker JAFX Ltd., which is registered on the St. Vincent and the Grenadines.

 

CFTC accuses JAFX Ltd. to be operating as a forex and CFD broker without a license and soliciting or accepting orders from U.S. retail customers without being registered with the CFTC as a retail forex dealer, as required by the US law.

 

According CFTC from September 2016 to the present moment  JAFX is operating as a retail foreign exchange broker, without being registered with the CFTC and without providing customers with the required Risk Disclosure Statement.

 

JAFX allegedly run videos on YouTube, where they offered  customers  to open trading accounts with as little as 100 USD, by submitting an online application through JAFX’s website.

 

Recently a US Court has ordered Tallinex Ltd., an Estonian company, also licensed in St. Vincent and the Grenadines to pay more than 10 mln. USD in restitution to U.S. customers, as well as nearly 700 000 USD in civil penalty, because of similar charges – operating on the US market without a license.

 

All forex brokers in the US should hold a license by CFTC and the National Futures Association (NFA), which is known for its tough financial regulations, including a requirement for a minimum operational capital in the amount of 20 mln.USD. As mentioned above only CFTC and NFA regulated brokers can offer forex and CFD investment services to US citizens. 

 

CFTC also thanked the Bulgarian Financial Supervision Commission (FSC) for the assistance with the investigation against JAFX Ltd.

TAGS: CFTC  NFA  JAFX Ltd. scam  forex  CFD 
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