Two directors of a local online forex bureau have been arrested by the Banking Fraud Investigations Department (BFID) on suspicion that they could have swindled the public of millions of shillings in the highly risky and unregulated online currency trading bets. A letter obtained by Business Daily from SoftLaw Limited, which currently operates an online forex trading business under the name Genius Forex Ltd shows that the Central Bank of Kenya (CBK) warned the company that its activities are illegal under the Banking Act in March this year. The letter written to SoftLaw's online forex trading customers says CBK had advised the firm that investing other person's funds at the company's risk would require a licence from the Central Bank and therefore the company was terminating existing contracts with its clients then. Genius Forex Ltd which is one of the local online forex trading companies claims that it operates with licence from the Nairobi City Council and the ministry of trade. The directors of Genius Forex Mr Alala and Harrison Karanja claim to have an introducing brokerage licences from Capital Markets Services (CMS), an international online forex trading company. read more
[Tags]forex, online, trading, business, cbk, , forex news[/Tags]
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