The Cyprus Securities and Exchange Commission (CySEC) said on Friday it has imposed fines to five forex brokers in the total amount of EUR 1.33 million in total for violating the local regulations, including the Investment Services and Activities and Regulated Markets Laws.
The fined companies are CySEC –regulated forex brokers IronFX Global, Depaho, Pegase Capital, WGM Services, and Reliantco Investments. The CySEC board took its decisions related to the imposed fines on meetings in the 29 September-18 November period.
The amount includes a settlement paid by IronFX Global in the amount of EUR 335,000. Earlier this year, CySEC said it was investigating IronFX for denying withdrawals to more than 150 customers, mainly Chinese traders and IBs. The funds they claimed were in the amount of $1.25 million.
Some of the companies are fined since they have breached the laws related to the licensing and operation of investment companies (Directive DI 144-2007-01 of 2012), while some have breached laws in relation to professional competence of investment firms (Directive DI 144-2007-02 of 2012). Depaho, WGM Services and Pegase Capital have also breached the regulations for prevention of money laundering under Directive DI 144-2007-08 of 2012 of The Prevention and Suppression of Money Laundering and Terrorist Financing Law.
The CySEC also fined Depaho EUR 233,000 and Pegase Capital received a fine of EUR 300,000. WGM Services and Reliantco Investments were fined EUR 340,000 and EUR 123,000, respectively.