NASSAU, BAHAMAS — The Securities Commission of The Bahamas (SCB) yesterday issued a notice urging members of the public to exercise “extraordinary precaution” before engaging in activities with Cash Forex entities or agents.
The commission said those entities were neither registered nor authorized to conduct financial services business in this jurisdiction.
The commission’s notice stated it had been made aware that the Cash Forex Group may be conducting activities that are registrable under the Securities Industry Act, 2011; the Investment Funds Act, 2019; and the Financial and Corporate Service Providers Act, 2000.
“The commission hereby advises the public that neither Cash Forex Group nor its agents and/or its consultants are registrants of the commission and they have not made an application for registration with the commission. Therefore, any conduct of registrable activity by this organization, its agents or consultants in or from this jurisdiction is a violation of one or more of the acts,” the commission said.
It added, “If this organization, its agents or consultants in any way hold themselves out as fully compliant and bona fide operating securities or financial services business in or from this jurisdiction, they are committing an offence and are liable for criminal prosecution and/or regulatory sanctions under the relevant laws of The Bahamas.”
According to the SCB, the Cash Forex Group is a multi-level marketing entity that is targeting citizens of The Bahamas via numerous Zoom meetings.
The entity reportedly claims its members or participants here in The Bahamas do not have to conduct trades themselves as there are teams of professionals at Cash Forex Group who trade on their behalf, despite the fact that Cash Forex Group and its agents are not registered with the commission to trade for others.
According to the SCB, Cash Forex Group claims that its Bahamian clientele would earn one percent interest per day for five days of the week on money invested with Cash Forex Group and that the Cash Forex Group’s members and guests did not have to recruit anyone on behalf of the company.
“However, current Bahamian participants have been encouraged, via Zoom meetings, to facilitate the signing up of new participants and their subsequent depositing of cash with Cash Forex Group, an act for which the facilitators are financially rewarded. The commission is aware that Cash Forex Group, via Zoom presentations, continues to inform of entering into contracts with Bahamian citizens to trade on their behalf, without having a license from the commission to do the same,” the SCB noted.
It also pointed out that several foreign regulators have issued warning notices regarding the Forex group. According to the SCB, anyone desirous of conducting securities or financial services business with the Forex organization, its agents or consultants, should be cognizant that they are doing so with an entity and or individuals who are not registered with the commission to operate within or from The Bahamas.
“Therefore, the commission urges the public to exercise extraordinary precautionary measures before engaging in any business activities with any of the subject entities,” the SCB said.