Banc De Binary to Pay $11m Settlement to US Regulators
- Following a multi-year investigation Banc De Binary is to pay $11m to settle with CFTC/SEC over allegations of illegally soliciting US clients.
The online brokerage and Liverpool Football Club sponsor Banc De Binary has reached an $11 million settlement with US authorities after several years of investigations over it illegally providing binary options trading to US customers.
Following a multi-year investigation a number of charges hit Banc De Binary from the CFTC in 2013, and now the company has reached a settlement with US authorities agreeing to pay $7.1 million in restitution and disgorgement, $2 million in civil penalties to the CFTC, and $1.95 million in civil penalties to the US SEC.
This is according to filings this week in a Nevada Court, including dockets 156 and 160, after docket 147 was filed on February 16, 2016 in the United States District Court, Nevada District.
According to people close to the developments, the judgements issued under docket 156 and 160 have been finalized (for the amounts mentioned above) while the agencies have not yet published their respective press releases as the judges for each stipulated case still need to sign-off on the plan for distribution (under docket 155).
The distribution will happen through a fund that will be created for $9 million of the settlement money for the CFTC and SEC cases, with the press releases to follow shortly from each regulator in the coming days ahead. The SEC had no comments.
The broker had been allegedly soliciting US customers with binary options and related contracts on CFDs and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term products between 2011 and 2013, circumventing a U.S. prohibition on OTC binary options contracts. The company had a supposed 'virtual office' while its office address was listed in the Trump Towers in New York on its website.
Banc De Binary said it neither admits nor denies the allegations, common language used in settlements with both the SEC and CFTC (as well as in NFA related cases).
A company spokesperson said "We look forward to putting this behind us," while thanking the agencies, according to coverage by WSJ. The company's founder Oren Laurent will pay $150,000 as part of the settlement.
The news follows CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term's recent fine for 350,000 euros requiring Banc De Binary to pay up again, as covered by Finance Magnates, after the Cyprus regulator said it was preparing to issue more monetary penalty enforcements.
The online brokerage and Liverpool Football Club sponsor Banc De Binary has reached an $11 million settlement with US authorities after several years of investigations over it illegally providing binary options trading to US customers.
Following a multi-year investigation a number of charges hit Banc De Binary from the CFTC in 2013, and now the company has reached a settlement with US authorities agreeing to pay $7.1 million in restitution and disgorgement, $2 million in civil penalties to the CFTC, and $1.95 million in civil penalties to the US SEC.
This is according to filings this week in a Nevada Court, including dockets 156 and 160, after docket 147 was filed on February 16, 2016 in the United States District Court, Nevada District.
According to people close to the developments, the judgements issued under docket 156 and 160 have been finalized (for the amounts mentioned above) while the agencies have not yet published their respective press releases as the judges for each stipulated case still need to sign-off on the plan for distribution (under docket 155).
The distribution will happen through a fund that will be created for $9 million of the settlement money for the CFTC and SEC cases, with the press releases to follow shortly from each regulator in the coming days ahead. The SEC had no comments.
The broker had been allegedly soliciting US customers with binary options and related contracts on CFDs and Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term products between 2011 and 2013, circumventing a U.S. prohibition on OTC binary options contracts. The company had a supposed 'virtual office' while its office address was listed in the Trump Towers in New York on its website.
Banc De Binary said it neither admits nor denies the allegations, common language used in settlements with both the SEC and CFTC (as well as in NFA related cases).
A company spokesperson said "We look forward to putting this behind us," while thanking the agencies, according to coverage by WSJ. The company's founder Oren Laurent will pay $150,000 as part of the settlement.
The news follows CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term's recent fine for 350,000 euros requiring Banc De Binary to pay up again, as covered by Finance Magnates, after the Cyprus regulator said it was preparing to issue more monetary penalty enforcements.