The UK’s Financial Conduct Authority has issued a securities fraud warning against Cash FX Group.
The FCA is the UK’s equivalent of the SEC. MLM companies need to be registered with the FCA to offer securities across the UK legally.
Cash FX Group, who offer passive returns of up to 400%, are not registered with the FCA.
As per the FCA’s December 11th warning;
We believe this firm has been providing financial services or products in the UK without our authorisation.
Almost all firms and individuals offering, promoting or selling financial services or products in the UK have to be authorised by us.
However, some firms act without our authorisation and some knowingly run investment scams.
This firm is not authorised by us and is targeting people in the UK. Based upon information we hold, we believe it is carrying on regulated activities which require authorisation.
At the time of publication Alexa estimates the UK is the largest source of traffic to Cash FX Group’s website (25%). South Africa (24%) and the US (18%) come in at second and third.
Cash FX Group is not registered to offer securities in South Africa or the US either.
As is typical of the UK, it’s unlikely that any further action against Cash FX Group will be taken.
Still, the FCA’s warning might spur other governments to issue similar warnings and take further action.
Cash FX Group is run by Huascar Lopez, who is believed to be operating out of the Dominican Republic.