It’s been less than a week since the US Commodity Futures Trading Commission (CFTC) had filed a proposed consent order within the District Court of Utah. This came in a move made to close its case that targeted JAFX, a forex firm. Now, Magistrate Judge Dustin B. Pead has given official approval of this proposed order. The Judge signed the consent order on the 22nd of June, 2020.
Docking Out $600,000 In Civil Penalty
The order will mandate that JAFX should pay a civil monetary penalty. This penalty totals in value of $600,000, and this Supplemental Consent Order will resolve all remaining issues, as well.
JAFX stands as an offshore company operating from the Grenadines, St Vincent, as well as Bulgaria. The CFTC originally charged the company as it had violated the Commodity Exchange act, as well as the Commission Regulations.
Illegally Operating Out Of Three Countries
According to the complaint that the CFTC had leveled against the broker, JAFX had offered retail forex services within the US since at least September of 2016. The issue regarding this is the fact that JAFX had seen it fit not to register with the CFTC when doing so. Without any registration for being a retail foreign exchange dealer (RFED), or any other form of validation from the CFTC, the exchange was operating outside the laws of the country.
Something that should be noted is that the CFTC made it clear that JAFX had not given it any form of application. According to the US regulator, JAFX operates as an unregistered forex dealer, and has yet to provide any form of a disclosure statement. It seems that the broker holds no plans even to defend itself against this new development.
Many Colourful Website Claims
Further details regarding the complaint documents focus on the website itself. The website claims that JAFX was founded back in 2013, operating within the jurisdictions of St Vincent and the Grenadines. The website claimed that it could offer customers a true ECN/STP brokerage, and provided the MetaTrader 4 platform, as well. Another oddly specific statement that the website had made, is the fact that a different entity, JAFX EOOD, operates its payment services. This company is based in Sofia, the capital of Bulgaria.
It seems JAFX will have no choice but to pay this fine. With any luck, they’ll refrain from doing this again, but the probabilities are slim in that regard.