4 August, AtoZForex.com, Lagos – A few months back CySEC, abbreviated from the securities and exchange commission, fined the binary options broker Banc de Binary. The financial regulator justified this decision by clarifying that the underlying reason for this action has to do with the flaws in business dealings of Banc de Binary. This marked the second time that the binary options broker will incur a penalty for a breach of the regulator’s rules. And now, CySEC fines Banc de binary again, due to violations of the prevention and suppression of money laundering and terrorist law.
Back in May, CySEC slammed the broker with a marked up fine of EUR 20,000 for a dual breach of CySEC business clauses. The first breach constitutes a fine of €10,000, which was levied as a result of violations of Article 6 (9) of the Investment Services and Activities and Regulated Markets Law. Basically this penalty defines that the binary options broker has been caught offering other operational services, which are not included in the coverage of its CIF license.
The second breach, which resulted in the remaining €10,000 fine was in relation to failure of the binary options firm to fully disclose its ties to another business enterprise. This is in violation of Article 28 (1), which clearly outlines that: “A CIF must at all times comply with the conditions under which authorisation was granted”. This is also in relation to Article 14 of the Law which states that “Where close links exist between the applicant and other persons, the Commission shall grant a CIF authorisation, only if those links do not prevent the effective exercise of its supervisory functions.”
In the latest statement from CySEC, Banc de binary, the Board of the Cyprus Securities and Exchange Commission (CySEC) has informed the public on a new fine on the broker for violations of the prevention and suppression of money laundering and terrorist law. The watchdog stated that: “The Board of the Cyprus Securities and Exchange Commission (CySEC) would like to inform the public that, at the meeting held on 6 th July 2015, decided to impose a total administrative fine of €22.000 to CIF Banc De Binary Ltd for violating: 1. section 58(a) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as in force, and 2. paragraphs 5(d) and 9(1)(d),(i),(j) of the CySEC’s Directive DI144-2007-08 of 2012 for the Prevention of Money Laundering and Terrorist Financing.”
CySEC has become more active in recent times in tracking down illicit activities among brokers as it seeks to fortify its reputation as a foremost regulator in the region.