Alfa-Forex Stops Operations in Russia

Alfa-Forex stops operations in Russia, according to the latest announcement on its website. The statement from Alfa-Forex this Tuesday has cited the regulatory obligations as the reason for suspending the offering to the Russian clients.

14 February, AtoZForex Alfa-Forex, a Forex brokerage operating from Cyprus, has reportedly stopped providing trading services to the clients in Russia.

Alfa-Forex Stops Operations in Russia

The firm has made a decision to halt operations in Russia following last week’s announcement from the Cypriot regulator, the Cyprus Securities and Exchange Commission (CySEC). The Cypriot watchdog has published a circular called “Provision of investment and ancillary services and/or performance of investment activities in a third country“.

Via this announcement, the CySEC wishes to inform CIFs that intend to provide investment and ancillary services and to perform investment activities in the territories of third countries.

The official publication of the CySEC mentions the following points in regards to the CIFs:

  • CIFs wishing to provide and/or perform the above-mentioned services and activities in third countries, must notify CySEC via a letter of their intention to do so.
  • Prior to providing/performing the said services/activities in third countries, CIFs need to acquire the necessary authorisation by the respective competent Authorities of the third countries, in accordance with their legislative framework.
  • CIFs should provide CySEC with a certified copy of the authorisation for the provision of these services by the competent Authority of the third country.

In case that the third country does not require such authorization, the CIF must provide CySEC with a legal opinion issued by a qualified lawyer or a legal firm of the relevant jurisdiction that no such authorisation is required or a certified copy of the legal opinion.

Alfa-Forex’s announcement

The announcement from the broker’s website states the following:

“We inform you about the termination of the relationship with residents of the Russian Federation. It is planned that the customer service of such clients will be discontinued until 23rd of March. 

We apologize for the inconvenience. Until the end of February 2018, the Company will inform you about the timing and procedure for terminating transactions on your accounts. 

All the obligations to the current Alfa Forex clients will be duly performed in accordance with the present agreements, Terms of Business and applicable law under the control of the CySEC.”

The statement from Alfa-Forex this Tuesday has cited the regulatory obligations as the reason for suspending the offering to the Russian clients. We have reached out to Alfa-Forex in order to get additional insights into the case and are currently waiting for their response.

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