On March 31, 2016, the Cyprus Securities and Exchange Commission (CySEC) announced that they had fined Mayzus Investment Company Ltd (Mayzus) €12.000. The fine was for noncompliance with anti money laundering regulations. Specifically:
- €8.000 fine for noncompliance with Section 58(1) of L.188(I)/2007, the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007. This section references other sections of the same law. They collectively require the company to apply adequate and appropriate systems and procedures to identify customers. They further require that the company perform due diligence to have reasonable assurance that a customer is not engaging in money laundering or terrorist financing activities. Specific due diligence activities referenced by CySEC include:
- obtaining information on the purpose and nature of the business relationship
- ongoing monitoring and scrutiny of customer transactions, and keeping records up to date
- additional enhanced identification measures in situations where a customer is not physically present for identification
- €4.000 fine for violation of paragraph 5(d) of the Directive: 2012 of the Securities and Exchange Commission for the Prevention of Money Laundering and Terrorist Financing. This violation specifically references the responsibility of the board of directors of a company to obey the L.188(I)/2007 law described above. Paragraph 5(d) explicitly describes the importance of obeying paragraph 58(1) of the 2007 law. CySEC charges that there were no indications that Mayzus' board of directors had ensured that appropriate controls or systems were in place for complying with the law and detecting attempts by customers to launder money or finance terrorist activities.
CySEC noted in their announcement that Mayzus displayed a commitment to adopt changes in their business to ensure that they would comply with the law in the future.
So Is Mayzus A Scam Forex Broker?
While CySEC is clear that they believe that Mayzus broker the law, there does not appear to be any ill intent on the part of Mayzus. The laws in question are very complex and carry a high administrative burden, so it is no surprise that a forex broker like Mayzus may fail to meet all the requirements. There is no evidence described by CySEC that money laundering or terrorist financing actually took place in Mayzus accounts. Most importantly to potential or existing Mayzus customers, these regulatory violations appear to have no impact on customer trading. The violations in question are not designed to protect traders.
About Mayzus Investment Company
Mayzus Investment Company is an online forex broker headquartered in Limassol, Cyprus. The company has been in business since 2008. They are regulated by CySEC, and their website claims that they are registered with the United Kingdom's FCA and other regulatory bodies in Europe. The company offers Straight Through Processing (STP) trading accounts using the MetaTrader 4 platform, and Currenex Accounts using the Currenex platforms.
Author: Forex Scam Alerts Google+