This archive report was first published on 16 August 2019.
On August 16, 2019, the Central Bank of Kenya (CBK) issued a warning to Kenyans about the dangers of dealing with unlicensed and unregulated online forex dealers.
According to CBK, these dealers pose a significant risk to Kenyans, who may lose their money due to the lack of proper regulation and oversight.
"The attention of CBK has been drawn to the unlicensed and unregulated online forex dealers and platforms that put Kenyans at risk of losing their money," CBK stated.
CBK advised citizens to check the licensing status of forex dealers on the CBK website to confirm authenticity.
Some of the characteristics of these dealers and platforms include purporting to offer the best forex deals in the market, lacking requisite licenses issued by CBK or CMA, and inadequate anti-money laundering and consumer protection safeguards.
CBK also noted that these platforms are often downloadable on Google Play and Apple App store, and aggressively market themselves through social media and mass emails.
Victims of these unlicensed dealers are encouraged to report through the Banking Fraud Investigations Unit.
It's worth noting that the Capital Markets Authority (CMA) had previously warned Kenyans about the same issue in October 2018, stating that only one license had been issued to EGM Securities Limited to operate as a Non-Dealing Online Foreign Exchange Broker.
