18 June, 2020 | AtoZ Markets – JAFX is an offshore company claiming to be based in St. Vincent and the Grenadines and Bulgaria. According to its website, it is also a true ECN/STP broker and offers the MetaTrader 4 platform. Besides, JAFX EOOD in Sofia, Bulgaria operates its payment service.
The CFTC accused JAFX of violating the Commodity Exchange Act and Commission rules in 2018. According to CFTC's complaint against the broker, JAFX is not registered to provide retail forex trading service. Despite that, it took money from US traders and conducted retail forex trades. CFTC also points out that it has not received an application from JAFX. Last year, the court signed a permanent injunction and other statutory orders against JAFX.
The US regulator said that "from at least September 2016 and continuing to the present, JAFX operates as a retail foreign exchange (forex) dealer, without being registered with the CFTC, as required, and that it fails to provide customers with the required Risk Disclosure Statement."
JAFX Will Pay Civil Monetary Penalty to Settle CFTC Charges
Today, CFTC reached a settlement agreement with JAFX, and both parties filed a consent order in the Utah District Court. CFTC and JAFX have agreed to enter of a permanent injunction and other equitable and Relief orders paying a $600,000 civil monetary penalty. The regulator said:
"The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud."
Think we missed something? Let us know in the comment section below.