Cyprus financial regulator CySEC has announced that it has issued a fine of €50,000 against Retail FX and CFDs broker FXBFI Broker Financial Invest Ltd. The company has operated the brands FXBFI (fxbfi.com) and 101investing (101investing.com).

The move comes after last summer CySEC levied a €150,000 fine against FXBFI, which had to do with conflicts of interest vis-a-vis clients, as well as principles and information addressed to clients. FXBFI was also one of the CySEC-regulated brokers which were banned from taking UK clients by UK regulator FCA back when CySEC CIF licenses could be passported to the UK pre-Brexit for (among other things) applying pressure to clients to invest additional funds, and failing to allow customers to withdraw funds.

The latest €50,000 fine is in regards to failures in the areas of prevention and suppression of money laundering and terrorist financing. CySEC stated that FXBFI did not apply adequate and appropriate policies, controls and procedures, so as to mitigate and manage the risks of money laundering and terrorist financing effectively.

Both of the company’s aforementioned websites are now no longer operational, with CySEC also reporting that FXBFI’s CIF license is under examination for voluntary renunciation.

The full statement issued by CySEC on the matter reads as follows:

20 June 2023

CYSEC Board Decision

Regarding: FXBFI Broker Financial Invest Ltd

Legislation: Τhe Prevention and Suppression of Money Laundering and Terrorist Financing Law, Directive regarding the prevention and suppression of money laundering and terrorist financing

Subject: Fine €50.000

The Board of the Cyprus Securities and Exchange Commission (the ‘CySEC’) wishes to inform the public that, at its meetings held on the 3rd April 2023, decided to impose an administrative fine of €50.000 to the company FXBFI Broker Financial Invest Ltd (LEI 21380042CEXI1HE2DK66) (‘the Company’) for non-compliance with section 58(e) of the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007, as in force (‘the Law’) and paragraph 26 of the Directive regarding the prevention and suppression of money laundering and terrorist financing (‘the Directive’), during the period under review 23.7.2020–18.1.2021, as the Company did not apply adequate and appropriate policies, controls and procedures, so as to mitigate and manage the risks of money laundering and terrorist financing effectively, in relation to the detailed examination of each transaction which by its nature may be considered to be particularly vulnerable to be associated with money laundering offences or terrorist financing.

Full justification of the CySEC’s decision is available in the Greek text of the announcement.