Exclusive: USGFX Vanuatu having client withdrawals blocked by regulator
FNG Exclusive… It looks like USGFX Australia isn’t the only USG Group company having problems.
Following our recent update on the bankruptcy of USGFX Australia, FNG has learned that the website operated by the USG group’s offshore arm in Vanuatu (usgfx.com) has sent a note to clients (see full text below) indicating that processing client withdrawals had proved to be a ” slower process than initially anticipated,” due to what the company termed were restrictions put in place by the regulator. The company stated that not all clients will receive their full withdrawal amount by the previously stated target of the end of the year.
USGFX did note that more than 50% of the withdrawals have been processed, and it now expects to have returned 100% of client fund withdrawal requests by the end of March 2021, at the latest.
We would note that neither the USGFX Australia bankruptcy, nor the current issues being experienced by USGFX Vanuatu, are directly related to the FCA licensed arm of the USG group, Union Standard International Group Limited (or USGFX-UK), which operates website usgfx.co.uk. However all three entities are controlled by the same shareholder, Hein Min Soe, said to reside in Myanmar.
The note sent by Union Standard International Group Holdings Limited to clients reads as follows:
4 December 2020
Statement from the Board of Union Standard International Group Holdings Limited
The USG group would like to reiterate their commitment to return to their clients the full amount of the funds due to them. USG has been working very hard to process the withdrawals but unfortunately this has proven to be a slower process than initially anticipated due to the restrictions put in place by the regulator. It is now apparent that not all clients will receive their full withdrawal amount by the previously stated target of the end of the year.
USG continues to process withdrawals on a daily basis and to date over 50% of the withdrawals have been processed. Although the vast majority of clients will receive their funds sooner, USG now expects to have returned 100% of the funds by the end of March, at the latest.
The USG Group apologises again for all the inconvenience and distress caused by this situation and thanks the USG clients for their continued understanding and loyalty.