PRESS RELEASE
CMA cautions investors against dealing with Interweb Global Fortune
Nairobi, 26 September 2019…In a bid to enhance investor protection and the fair treatment of customers, Capital Markets Authority (CMA) has cautioned the public against participating in Online Forex Trading through Interweb Global Fortune and its director Mr. Manasseh Kuria Karanja.
Preliminary investigations conducted by the Authority have revealed that Interweb Global Fortune has been purporting to carry on business as an Online Forex Trading Broker and Money Manager without a valid license from the CMA in line with Section 23(1) of the Capital Markets Act. In addition to unlawfully collecting funds from investors, Interweb Global Fortune’s business model features traits of a pyramid or ponzi scheme, where investors are promised high returns or dividends which are not realistically available through credible investment products. Investors have also been encouraged to recruit other people for a commission’, CMA Chief Executive, Mr. Paul Muthaura observed.
The Authority’s Capital Markets Fraud Investigation Unit in collaboration with the Directorate of Criminal Investigation conducted an operation against unlicensed and unregulated Online Forex Trading entities in the country. Consequently, the Authority in collaboration with other law enforcement agencies has frozen the company’s bank accounts pending further inquiries.
The investigation further revealed that Interweb Global Fortune has misled investors by claiming that it has applied for a license from the Authority. `Contrary to the entity’s claim, the Authority has never received any application for license to operate as an online forex broker or money manager from the Interweb Global Fortune or its directors,’ Mr. Muthaura added.
Members of the public are encouraged to avoid dealing with unlicensed and unregulated financial entities as they risk being defrauded or losing their money. A list of licensed entities is available on the CMA website www.cma.or.ke. Members of the public who have been affected or become aware of such illegal online foreign exchange are advised to report to the Authority’s Capital Markets Fraud Investigation Unit and/or any police station.
ENDS
BACKROUND INFORMATION ON THE CAPITAL MARKETS AUTHORITY
The Capital Markets Authority (CMA) was set up in 1989 as a statutory agency under the Capital Markets Act Cap 485A. It is charged with the prime responsibility of both regulating and developing an orderly, fair and efficient capital markets in Kenya with the view to promoting market integrity and investor confidence. The regulatory functions of the Authority as provided by the Act and the regulations include; Licensing and supervising all the capital market intermediaries; Ensuring compliance with the legal and regulatory framework by all market participants; Regulating public offers of securities, such as equities and bonds & the issuance of other capital market products such as collective investment schemes; Promoting market development through research on new products and services; Reviewing the legal framework to respond to market dynamics; Promoting investor education and public awareness; and Protecting investors’ interest. For more information, please contact: Antony Mwangi, Head of Corporate Communications on This email address is being protected from spambots. You need JavaScript enabled to view it.
