Freedom Finance Pays €50K to CySEC over ‘Potential’ AML Non-Compliance

<p>Freedom
Finance 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 brokerage
subsidiary of the US-based investment conglomerate, Freedom Holding Corp. </p><p>Freedom Finance Europe Settles with CySEC</p><p>The Cyprus
Securities and Exchange Commission (CySEC) announced the settlement payment
today (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. </p><p>In
addition, CySEC probed the
online broker’s compliance with the rules on establishing
‘adequate and appropriate’ policies, controls and procedures to monitor client
transactions likely to be associated with money laundering or terrorist
financing activities. The provision also dictates monitoring “complex or
unusually large transactions and all other unusual patterns of transactions
which have no apparent economic or visible lawful purpose,” CySEC explained. </p><p>Freedom
Finance Europe Seeks Growth </p><p>According
to CySEC’s register, Freedom Finance Europe operates under the trading names
Freedom Finance, Freedom Broker and Freedom 24. The brokerage operates a
network of 15 sites through which it offers stocks, exchange-traded funds,
futures and options trading opportunities to clients across Europe.</p><p>The
settlement with CySEC comes as Freedom Finance Europe seeks to grow
its business and industry presence. On Thursday, the broker signed <a href="https://www.freedom24.com/news/13690-freedom-finance-europe-partners-krasava-football" target="_blank" rel="follow">an exclusive
partnership agreement</a> with FC Krasava, a football club that moved its
base from Russia to Cyprus due to Russia’s ongoing war
with Ukraine.</p><p>Recently, the online broker introduced <a href="https://www.freedom24.com/news/13570-freedom-finance-europe-long-term-investment-plans" target="_blank" rel="follow">long-term investment
plans</a> to its
clients, offering interest rates of up to 5.8% per annum in US dollars and up
to 3.6% per annum in euros. The firm said that the rates “are much higher than
the savings account returns currently offered by most European banks and
brokerages.”</p><p>On the other hand, the settlement represents CySEC’s latest action against Cyprus
Investment Firms (CIFs) erring. Finance Magnates reported on Wednesday that the institutional broker, BCS Cyprus, <a href="https://www.financemagnates.com/institutional-forex/cysec-reaches-100k-settlement-with-institutional-broker-bcs-cyprus/" target="_blank" rel="follow">paid
€100,000</a> to the regulator to settle the company’s ‘possible
violations’ of Cyprus and the European Union’s financial market rules. The
measure followed
the watchdog’s investigation into BCS’ compliance of the rules between 2019
and 2021. </p><p>Furthermore, CySEC recently reached <a href="https://www.financemagnates.com/forex/cysec-reaches-new-100k-settlement-with-bcm-begin-capital-markets/" target="_blank" rel="follow">a settlement of €100,000</a> with forex and contracts
difference broker, BCM Begin Capital Markets. In addition,
the watchdog has <a href="https://www.financemagnates.com/forex/cysec-withdraws-cif-license-of-fxcfds-broker-trilt/" target="_blank" rel="follow">withdrawn at least five</a> CIF licenses
since the start of the year, as part of its supervisory duty.</p>

This article was written by Solomon Oladipupo at www.financemagnates.com.