Forex Corporate CRFIN blacklist

11 November,, Lagos – Russian self regulatory authority, the Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN) has again discovered a fraudulent firm, added the online brokerage Forex Corporate to its blacklist. According to the announcement, the Russian CRFIN clarified that the organisation operates a pyramid of schemes, while also lacking the proper authorization.

Forex Corporate promises as high as 20% guaranteed return on investment, without presenting a plausible model with which to earn this. It also runs a multi-level marketing scheme, offering significant bonuses for customer acquisition. On top of these schemes, the Russian self regulatory body notes that the online brokerage Forex Corporate is not even a member of SRO TSRFIN. Adding all these matters together, is it only logical that CRFIN added Forex Corporate to its blacklist.

How to spot fraudulent investment schemes?

In order to safeguard investors, the CRFIN Control Commission suggests investors to read these common features of the 15 firms that went bankrupt:

– The promise of high and/or guaranteed profitability to potential participants. One of the reasons that can induce customers to trust the company is a promise of increased profitability not confirmed by documents. Often, it is a guaranteed return of 3% per month.

– Significant bonuses to attract clients, which can consist of one-time payments for attracting a new customer as well as a regular accrual percentage of passive income of each attracted client.

– Absence of objective payment guarantees. As a rule, a client does not have any objective guarantees of paying his funds back except for the assurance of the company. The contract either doesn’t contain such actions or it is concluded on behalf of other legal entity or has an exotic jurisdiction. The contract is often missing even on the official site of the company.

– Signs of false positioning. The source of the income, as a rule, is declared trust managing at the Forex market, while in the Russian Federation trust managing at the financial markets is a licensed activity. The false positioning should also include handling the conceptions of “investment” and “deposit” by forex companies, as they relate to banking activities in the legislation of Russia.

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