Bank of Russia detects illegal investment platform operators
The information about them has been included in the List of detected entities having signs of unlawful activity. Besides, the regulator promptly submits these data to law enforcement agencies.
According to law, investment platforms may only be created by companies put on the relevant register of the Bank of Russia. They must ensure the protection of investors’ funds, disclose information necessary for making investment decisions, and comply with other legal requirements for investor protection.
Illegal operators carry out their activity beyond the legal framework and are not supervised by the regulator. Their activities might involve risks for consumers. In their ads, these entities often promise high guaranteed returns. However, an investor is unable to verify the existence and quality of the advertised investment projects through independent data sources or to track the flow of invested funds. Moreover, illegal entities create non-competitive conditions in the market.
The Bank of Russia reminds individuals that they should always be cautious and verify whether an entity operates legally. It is essential to remember that, pursuant to law, investments may only be transferred to an investment platform operator’s nominal account and not directly to the entity that is raising funds or, the more so, to an individual’s bank card. Personal data or bank card details should not be entered on illegal entities’ websites.