End in sight?

Fortress Prime Misses Another Withdrawal Payment Deadline

Clients awaiting their withdrawals from the Dubai based prime broker have been sent wire transfer slips and post-dated cheques.

The clients of Fortress Prime, the Dubai-based prime brokerage of foreign exchange and CFDs contracts, have experienced yet another delay with their withdrawal requests. After recently providing clients with a deadline of November 15th for payment, a number of the broker’s customers have once again received promises instead of money.

Finance Magnates has learned that the company has now reassured its customers that they will receive their funds at a date no later than the 25th of November. The firm has sent out cheques and wire transfer slips with this new date.

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A couple of weeks ago, and following months of client withdrawal delays, the company issued a press release stating that it will receive a new capital injection from its founders. With Fortress Prime facing withdrawal issues, some rumors regarding its acquisition of a major broker have been questioned within the industry.

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Sources close to the matter have shared with Finance Magnates that two types of proof of upcoming payments have been received by clients. Some have received postdated cheques, supposedly to be honored on the 25th of November, while others have been sent postdated bank payment slips.

It is worth noting that the UAE treats bounced cheques as a criminal offense and grounds for arrest. This implies that Fortress Prime must indeed be confident of honoring the postdated cheques.

On a separate note, any online banking services client can order a bank transfer for a future date, print it out and even have it stamped by the bank. However, if the account from which the transfer is supposed to exit turns out to have insufficient funds, the transfer will not be executed.

A quick resolution to the Fortress Prime’s issues is very important from an industry perspective. Some clients of the company that are awaiting their withdrawals rely on the revenues which the company holds. Additional delays could quickly spread to other companies, regardless of whether they have direct dealings with the broker or not.

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