ASIC Flags Vanuatu, Marshall Islands Firms as Probable Scams

The Aussie regulator added four firms to a list of companies it advises people don't do business with

It’s another Monday here on planet earth, and that means a regulator has had to make some additions to its list of possible scams.

On this occasion, it’s the Australian Securities and Investments Commission (ASIC) that’s been tracking some less than scrupulous firms as they try to trick people across the world into handing out their hard earned cash.

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One firm that’s on the list is UFX. It’s unclear as to whether this is itself a clone of the Cyprus-based broker of the same name.

UFX still has approval from the Cyprus Securities and Exchange Commission. But on the website that ASIC links to, the firm is regulated in Vanuatu, a hub for many brokers that have been flagged as scams by regulators across the world.

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Across the ocean waves

Another favorite jurisdiction for shady brokers is the Marshall Islands. Far out in the Pacific Ocean, the small nation has next to no regulations governing the retail trading industry.

Thus, any broker that wants to offer a million to one leverage, make it impossible for clients to withdraw their funds, and cold call clients to make them deposit as much cash as possible, will find a welcoming home on the Marshall Islands’ balmy shores.

It was one such firm that ASIC flagged on Monday morning – RIMarkets. Reviews of the company on various rating websites indicate that it’s a scam. Users say the broker refused to allow them to withdraw their funds and even tried to steal information about their passports and bank accounts.

Last, but not on least, on ASIC’s latest warning list update are two investment firms. One is called Golden Day Profit, and the other is run by Liberty Global Partners. Both appear to offer bogus investment services, and a rudimentary scan of both firms’ websites suggests any money handed over to their owners will never be seen again.

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