The Cyprus Securities and Exchange (CySEC) has settled with Teletrade-DJ International Consulting Ltd, which is a provider of forex and CFDs trading services, for ‘any violation or possible violation’ for €120,000.
Though announced on Thursday, the Cypriot regulator finalized the decision on April 4, 2021.
With its CIF license obtained from the Cypriot financial markets regulator, Teletrade is offering trading services with forex and CFDs of multiple asset classes, including commodities, stocks and cryptocurrencies, across Europe. The broker-dealer received its license from CySEC at the end of 2011, but it has been operating for more than 26 years now.
The regulator did not specify the particular violation on the part of the brokerage firm, but detailed there were ‘possible violations’ of the Investment Services and Activities and Regulated Markets Law of 2017. It identified the compliance-related ‘possible violations’ during an on-site inspection in 2018.
More Settlements Ahead?
Many Cyprus-based financial services companies are infamous for non-compliance. Several European regulators have raised flags about these companies for not following mandatory local compliance while operating in their country.
In two recent announcements, CySEC itself pointed out several lapses on the part of CIF licensed companies, which include violations in following mandatory due diligence checks, AML/CFT risk assessments and transaction monitoring. The regulator found these lapses in similar on-site inspections but did not reveal the identity of any company.
“CySEC, under article 37(4) of the Cyprus Securities and Exchange Commission Law of 2009, has the power to reach a settlement for any violation or possible violation, act or omission for which there is reasonable ground to believe that it took place in violation of the provisions of CySEC’s supervised legislation,” the regulator stated.