The Israeli Branch of AvaTrade was fined with 576 000 Israeli Shekels or just about 153 000 USD for failing to comply with the local regulations.
The fine was imposed by the Israeli Securities Authority (ISA), which said the broker has violated the regulations twice.
The precise nature of those violations, however, is not disclosed.
“AvaTrade failed to make adjustments and controls in accordance with the law and failed to receive a special report from the auditor”, ISA said in a statement, adding that “…in imposing this financial sanction on AvaTrade, the authority emphasizes the importance of regulation in the retail forex market, including compliance with all the obligations related to the proper maintenance of the customers’ money.”
That last remark, about the need for “proper maintenance of the customers’ money” makes some observers comment that the fine might be linked to money laundering violations.
This is actually the second time AvaTrade has been fined by ISA – in May of 2017, the regulator fined AvaTrade with 150 000 Israeli Shekels – roughly 40 500 USD, for what was described as a misleading marketing campaign.
