The Capital Markets Authority (CMA) has warned the General public against patronizing online forex trading company; Interweb Global Fortune and the company’s director; Manasseh Kuria Karanja.
The warning is coming after the Capital Markets Authority (CMA)’s Capital Markets Fraud Investigation Unit and the Directorate of Criminal Investigation conducted an investigations into unlicensed and unregulated Online Forex Trading companies which operate in the country.
The Capital Markets Authority (CMA) said, “Preliminary investigations conducted by the authority have revealed that Interweb Global Fortune has been purporting to carry on business as an online forex trading broker and money manager without a valid license from the CMA.”
Online Forex trading is a practice which basically involves taking a position with regard to a particular currency and trading it via the internet. The endgame game is to buy low and sell high.
While it is not a new practice across the world, online forex trading is still in its infant stages in Kenya.
According to the Capital Markets Authority (CMA), the company; Interweb Global Fortune has been unlawfully collecting funds from investors, hence its decision to caution the general public against patronizing the establishment.
The Chief Executive of Capital Markets Authority (CMA); Paul Muthaura stated that, “Interweb Global Fortune’s business model features traits of a pyramid or ponzi scheme, where investors are promised high returns or dividends which are not realistically available through credible investment products. Investors have also been encouraged to recruit other people for a commission.”
Interweb Global Fortune is also reported to have misled investors by claiming that it has applied for a license from the Capital Markets Authority (CMA).
On the official website for Interweb Global Fortune, the company stated that it is registered under the Companies Act 2015 specialisation in trading and consultation.
The Chief Executive of the Capital Markets Authority (CMA) however stated that, “Contrary to the entity’s claim, the Authority has never received any application for a license to operate as an online forex broker or money manager from the Interweb Global Fortune or its directors.”
The Capital Markets Authority (CMA) went a step further to freeze the bank accounts of the company, until further inquiries have been completed.
In Kenya, only 2 companies had been granted a licence for online foreign exchange brokerage services under the Capital Markets Authority (CMA).
The Central Bank of Kenya had in August 2019 also issued a warning to citizens against dealing with unregulated and unlicensed online forex traders.
The Central Bank of Kenya added that the platforms are downloadable on Google Play and Apple App Store, and market themselves intensively via social media, and promise instant and huge returns.
Olymp Trade, FXPesa by EGM Capital, Forex Game, Go Forex by GoForex 24, Trading Signal, Iron Trading and Bimini Trade, are some of the forex trading applications available on Google Play Store.
In order to avoid losing their money members of the general public are encouraged to avoid dealing with online forex traders who are not online.
The Capital Markets Authority (CMA) added that, “Members of the public who have been affected or become aware of such illegal online foreign exchange are advised to report to the Authority’s Capital Markets Fraud Investigation Unit or any police station.”
