Financial safety

Russia shuts down foreign forex platforms specializing in moving money offshore

The Bank of Russia has revoked licenses of five out on nine foreign exchange dealers operating in the country – Alpari Forex, Forex Club, Fix Trade, Trustforex, and Teletrade Group. The decision comes into force on January 27.

All the companies are subsidiaries of foreign firms that use aggressive advertising to lure Russian clients and focus on moving their money offshore, according to the regulator.

The forex platforms now have a month to cease operations in Russia’s securities market and pay off their customers, the regulator said announcing the measure on Thursday. Liabilities of the five forex platforms deprived of licenses amount to 35 million rubles ($504,000) and have some 2,000 clients, only 470 of whom are active, according to department head of the Russian Central Bank Larisa Selyutina.