The CMA Is Committed To Enforcing Securities Laws And Regulations

In a recent development, the Capital Markets Authority (CMA) has brought to light significant violations within a Forex brokerage firm's operations, which are facilitated through external brokerage entities. The violations primarily pertain to discrepancies observed between customer transaction records and the corresponding accounts.

According to reports from Al-Jarida daily, the firm has failed to reconcile these records and accounts, resulting in a noticeable disparity between internally recorded amounts and the funds held in customers’ bank accounts and third-party accounts utilized for order execution.

The identified breaches also encompass the transfer of cash amounts from clients’ wallets to the company’s bank account without proper documentation, along with a failure to reconcile records with external entities, such as financial brokerage firms.

These external firms maintain separate accounts for executing client transactions in securities, exacerbating the inconsistencies within the company’s internal records.

The company offers a range of trading services and tools across diverse financial markets, including Forex, precious metals, stocks, indices, commodities, and energies. Moreover, it provides market information and analyses to trading clients and investors.

The CMA, dedicated to upholding securities laws and regulations, is taking stringent action to ensure accountability among all market participants. As a result, the implicated companies have been referred to the Disciplinary Board for appropriate penalties. This initiative aims to restore investor confidence and cultivate a transparent and trustworthy investment environment in alignment with international best practices.

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