April 18, 2016
CFTC Announces Additional Names to Its List of Foreign Entities that Illegally Solicit U.S. Residents in Forex and Binary Options
Registration Deficient (RED) List on CFTC Website Identifies Companies Operating Illegally without Being Registered
Washington, DC - As part of the U.S. Commodity Futures Trading Commission’s (CFTC) ongoing efforts to help protect Americans from fraud, today the agency announced the addition of 23 new names to the RED List. Started in September 2015, the RED List — standing for “Registration Deficient” — contains the names of unregistered foreign entities that the CFTC has reason to believe are soliciting and accepting funds from U.S. residents at a retail level for, among other things, trading in foreign currency (forex) or binary options, and who are required to register with the CFTC but, in fact, are not registered (see CFTC Press Release 7224-15, September 9, 2015).
These 23 new additions bring the total number of foreign entities on the RED List to over 40. The RED List can be found at: www.SmartCheck.gov/REDList.
Registration is no guarantee against fraud or mismanagement by an otherwise unscrupulous firm; however, it does bring a higher level of security and accountability to the public. For example, registration enables the CFTC to examine whether firms meet minimum financial standards as well as disclosure, reporting, and recordkeeping requirements.
The RED list complements registration information available on the National Futures Association website (https://www.nfa.futures.org). The CFTC publicizes the existence of the RED list to other government regulators, the media, consumer groups, industry participants, self-regulatory organizations, exchanges, and industry associations.
The 23 foreign entities added to the RED List are:
Banc de Options
Diamond Managed Forex
Forex Broker Inc.
Forex Investment Services
Golden Tangent Holdings
Paam-Maam Forex Fund Management
Profit Forex Corp
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See CFTC’s Binary Options Customer Fraud Advisory and “RED” List
The CFTC has issued a Consumer Alert to warn about fraudulent schemes involving binary options and their trading platforms. The Alert warns customers that the perpetrators of these unlawful schemes allegedly refuse to credit customer accounts, deny fund reimbursement, commit identity theft, and manipulate software to generate losing trades.
Customers can report suspicious activities or information, such as possible violations of commodity trading laws, to the CFTC Division of Enforcement via a Toll-Free Hotline 866-FON-CFTC (866-366-2382) or file a tip or complaint online.
Last Updated: April 18, 2016