Russia’s commission for the regulation of relations on financial market, KROUFR, has included Alfareserve, a company active in finance investment, in the black list with potentially harmful companies operating on the Russian market, a statement issued by the commission on Thursday indicates.
The investment company has not presented any licenses or permits issued by any of the relevant authorities in Russia.
The commission said it has received several signals against Alfareserve regarding unlawful acts, through which the company has improperly tried to gain benefits by offering short-term investment plans with guaranteed income of 12% for the investment period, as well as additional income from affiliate programs. The promised returns are unrealistic and artificially high and lurk investors to put their funds with the company.
In addition, according to the KROUFR, the company may be trying to associate itself with Alfa-Bank, part of the Alfa group of companies, when in fact it has nothing in common with it. Such resemblance is usually used by companies in order to delude potential clients and take advantage of their trust in familiar brands like the Alfa brand.
Alfareserve is operating through the website www.alfareserve.com, on which it has been repeatedly stated that it is not a pyramid or a Ponzi scheme and the promised income is indeed guaranteed, the commission noted.
And warned traders to be cautious as to what brokers they trust and to always check the credibility of their trading conditions.
KROUFR was set up in 2006 as a non-profit organization and since then has been working to develop services and regulate the relationship between Russian participants of global financial markets. KROUFR offers mediation in the forex market as well, as forex activities are regulated under local jurisdiction, whereas they run globally.