FreedomFinance Europe has paid €50,000 to the Cypriot securities watchdog to settle‘potential’ non-compliance with the country’s laws on anti-money laundering (AML). The firm is the online brokeragesubsidiary of the US-based investment conglomerate, Freedom Holding Corp.
The CyprusSecurities and Exchange Commission (CySEC) announced the settlement paymenttoday (Thursday), noting that its Board made the decision last month. The regulator said the settlement stems from its scrutiny of Freedom Finance Europe’s compliance with provisions on customer identification and due diligence on clients before and during a business relationship.
Inaddition, CySEC probed theonline broker’s compliance with the rules on establishing‘adequate and appropriate’ policies, controls and procedures to monitor clienttransactions likely to be associated with money laundering or terroristfinancing activities. The provision also dictates monitoring “complex orunusually large transactions and all other unusual patterns of transactionswhich have no apparent economic or visible lawful purpose,” CySEC explained.
FreedomFinance Europe Seeks Growth
Accordingto CySEC’s register, Freedom Finance Europe operates under the trading namesFreedom Finance, Freedom Broker and Freedom 24. The brokerage operates anetwork of 15 sites through which it offers stocks, exchange-traded funds,futures and options trading opportunities to clients across Europe.
"The settlement is associated with minor omissions in the company'sprocedures within a two-year period between 2017 and 2019. All the pointsindicated by the regulator have been resolved back then," Freedom Finance Europe told Finance Magnates via email. "We are glad to have amutual settlement and continue to adhere to the highest industry compliancestandards to ensure our clients and partners have the best possible investmentexperience."
Thesettlement with CySEC comes as Freedom Finance Europe seeks to growits business and industry presence. On Thursday, the broker signed an exclusivepartnership agreement with FC Krasava, a Russian football club that moved itsbase to Cyprus due to Russia’s ongoing warwith Ukraine.
Recently, the online broker introduced long-term investmentplans for itsclients, offering interest rates of up to 5.8% per annum in US dollars and upto 3.6% per annum in euros. The firm said that the rates “are much higher thanthe savings account returns currently offered by most European banks andbrokerages.”
On the other hand, the settlement represents CySEC’s latest action against CyprusInvestment Firms (CIFs) erring. Finance Magnates reported on Wednesday that the institutional broker, BCS Cyprus, paid€100,000 to the regulator to settle the company’s ‘possibleviolations’ of Cyprus and the European Union’s financial market rules. Themeasure followedthe watchdog’s investigation into BCS’ compliance with the rules between 2019and 2021.
Recently, CySEC reached a settlement of €100,000 with forex and contracts for difference broker, BCM Begin Capital Markets. In addition,the watchdog has withdrawn at least five CIF licensessince the start of the year, as part of its supervisory duty.
FreedomFinance Europe has paid €50,000 to the Cypriot securities watchdog to settle‘potential’ non-compliance with the country’s laws on anti-money laundering (AML). The firm is the online brokeragesubsidiary of the US-based investment conglomerate, Freedom Holding Corp.
The CyprusSecurities and Exchange Commission (CySEC) announced the settlement paymenttoday (Thursday), noting that its Board made the decision last month. The regulator said the settlement stems from its scrutiny of Freedom Finance Europe’s compliance with provisions on customer identification and due diligence on clients before and during a business relationship.
Inaddition, CySEC probed theonline broker’s compliance with the rules on establishing‘adequate and appropriate’ policies, controls and procedures to monitor clienttransactions likely to be associated with money laundering or terroristfinancing activities. The provision also dictates monitoring “complex orunusually large transactions and all other unusual patterns of transactionswhich have no apparent economic or visible lawful purpose,” CySEC explained.
FreedomFinance Europe Seeks Growth
Accordingto CySEC’s register, Freedom Finance Europe operates under the trading namesFreedom Finance, Freedom Broker and Freedom 24. The brokerage operates anetwork of 15 sites through which it offers stocks, exchange-traded funds,futures and options trading opportunities to clients across Europe.
"The settlement is associated with minor omissions in the company'sprocedures within a two-year period between 2017 and 2019. All the pointsindicated by the regulator have been resolved back then," Freedom Finance Europe told Finance Magnates via email. "We are glad to have amutual settlement and continue to adhere to the highest industry compliancestandards to ensure our clients and partners have the best possible investmentexperience."
Thesettlement with CySEC comes as Freedom Finance Europe seeks to growits business and industry presence. On Thursday, the broker signed an exclusivepartnership agreement with FC Krasava, a Russian football club that moved itsbase to Cyprus due to Russia’s ongoing warwith Ukraine.
Recently, the online broker introduced long-term investmentplans for itsclients, offering interest rates of up to 5.8% per annum in US dollars and upto 3.6% per annum in euros. The firm said that the rates “are much higher thanthe savings account returns currently offered by most European banks andbrokerages.”
On the other hand, the settlement represents CySEC’s latest action against CyprusInvestment Firms (CIFs) erring. Finance Magnates reported on Wednesday that the institutional broker, BCS Cyprus, paid€100,000 to the regulator to settle the company’s ‘possibleviolations’ of Cyprus and the European Union’s financial market rules. Themeasure followedthe watchdog’s investigation into BCS’ compliance with the rules between 2019and 2021.
Recently, CySEC reached a settlement of €100,000 with forex and contracts for difference broker, BCM Begin Capital Markets. In addition,the watchdog has withdrawn at least five CIF licensessince the start of the year, as part of its supervisory duty.
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