<p> The Financial Services Authority of the Saint Vincent and the Grenadines (SVG) has asked existing forex brokers registered in the Island country to produce a certified copy of the requisite licenses from the jurisdictions or authorities from which their business activities are conducted.</p><p> The non-bank financial services regulator also now requires prospective forex brokers that want to be incorporated or formed in the Carribean country to provide the same license from regulators of the jurisdictions where their business activities will be conducted. </p><p> The SVG markets supervisor disclosed these conditions in <a href=”https://drive.google.com/file/d/17QcXpKEUpfeDOgo1o7-utH3yVRteIbkj/view?usp=share_link” target=”_blank” rel=”follow”>a notice</a> sent to registered agents and trustees. The notice is titled, “Requirements for Business Companies (BCs) and Limited Liability Companies (LLCs) Engaging in FOREX Business Activity.” The notice was signed by the regulator’s Registrar of BCs and LLCs.</p><p>Saint Vincent Reacts to Surge in Fraud Claims against FX Brokers</p><p> The financial watchdog said the new policy is its response to the sharp increase in the frequency and number of complaints and allegations of fraud against forex trading firms and offshore brokers in the country. In addition, the regulator decried the “potential detrimental effects” of the trend on SVG’s reputation as an international financial centre. </p><p> “Failure to adhere to these requirements will result in the application of sanctions against the companies in accordance with the Financial Services Authority Act,” the regulator explained. </p><p>Furthermore, the authority urged registered agents and trustees to “continue to apply sound Anti-Money Laundering/Counter-Financing of Terrorism practices in ensuring that adequate screening measures and appropriate due dilligence measures are utilized, on a risk-sensitive basis, when onboarding clients (Directors, Shareholders and Beneficial Owners) who wish to incorporate/form companies in St. Vincent and the Grenadines.”</p>
This article was written by Solomon Oladipupo at www.financemagnates.com.
