CMA Warns Against Unlicensed Online Money Brokers

By Moses Adongo

The Capital Markets Authority (CMA) has threatened to act against all unlicensed online currency traders who have mushroomed in the Forex black market.

While warning Kenyans against engaging in online foreign exchange trading, the authority said that innocent citizens are exposed to risks of losing investment due to lack of protection by law.

CMA boss Paul Muthaura revealed that there is an increase of entities and persons who unlawfully masquerade as online foreign exchange brokers without the appropriate licensing.

“Members of the public who have been affected or become aware of such illegal online foreign exchange transactions are advised to report to the Capital Markets Fraud Investigation Unit,” said Muthaura, “The Authority is focused on taking appropriate enforcement action against any people illegally involved in online foreign exchange trade or collecting client funds in contravention of the above regulatory provisions.”

According to the Capital Markets Authority estimates, about 50,000 dealers are involved in illegal money exchange and are mainly using foreign platforms that are not regulated by the Kenyan government.

The individuals, according to the CMA boss, take advantage of the attraction of the tech-savvy Kenyan population into online trading. This has open up avenues for money laundering, fraud, and volatility to the currencies.

“CMA requires all online foreign exchange brokers or money managers not licensed by the Authority to desist from trading, conducting sensitizations in Kenya and onboarding Kenyan investors or managing online foreign exchange portfolios,” Muthaura said.

The authority says it has only issued one license to EGM Securities Limited to venture into the online money exchange and management.

Story Source

Kenya2uhub offers good deals in the following properties: