This archive report was first published on 16 August 2019.
On August 16, 2019, the Central Bank of Kenya (CBK) issued a warning to the public against dealing with unlicensed and unregulated online Forex dealers and platforms.
CBK has advised members of the public to only deal with genuine and licensed financial institutions and entities registered with either CBK or the Capital Markets Authority (CMA).
According to CBK, these unlicensed platforms aggressively market themselves through social media and mass emails, collecting funds from customers in exchange for foreign or local currencies.
CBK has stated that these platforms lack adequate anti-money laundering and consumer protection safeguards, and do not have the requisite licenses issued by CBK or the Capital Markets Authority (CMA).
Forex trading involves exchanging one currency for another, with exchange rates fluctuating based on economic factors like inflation, industrial production, and geopolitical events.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for everyone.
CBK's warning comes as a reminder to the public to be cautious when dealing with online Forex dealers and platforms, and to confirm the licensing status of any dealer before engaging with them.
