The Cyprus Securities and Exchange Commission (CySEC), in its latest enforcement action, has imposed a €50,000 administrative fine on FXBFI Broker Financial Invest Ltd, the operator of the now-shuttered CFDs broker brand 101investing.

CySEC’s Enforcement Action

In the announcement published today (Tuesday), the regulator pointed out that the monetary penalty was imposed for the company's lapses around anti-money laundering and terror financing prevention requirements.

"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," CySEC's notice pointed out.

It is not the first monetary penalty that has been imposed on FXBFI by the Cypriot watchdog. Last October, the brokerage operator paid €150,000 to the Mediterranean island's regulator to settle possible violations of the country's financial regulations. The regulatory investigation also examined compliance with the rule on reporting to clients and remuneration.

A Shuttered Broker

FXBFI operated the 101investing brand with a Cyprus Investment Firm (CFI) license, which allowed it to offer trading services across the European Economic Area (EEA). Naturally, it stopped offering services to UK residents following the country's exit from the European Union.

According to CySEC's registry, FXBI received an operational license in September 2016. However, it has 'voluntarily' renounced this authorization and is now under regulatory examination.

The website of 101investing, which offered CFDs of forex, stocks, indices, commodities, metals, and cryptocurrencies, is not reachable anymore, and the registered website of FXBFI is currently up for sale. An archived version of 101investing shows that the broker wrapped up its operations in early 2022.

"Following the closure of the open trades on the 25th of February 2022 and subsequently the termination of activities, please note that we are taking all the necessary measures to fully refund any outstanding balances. Where applicable, you will be contacted in order to provide any additional information needed so as to process and complete the refund," a notice on the archived website shows.