NSSMC: over 40 suspicious financial projects were identified in the IV quarter of 2020

In the last quarter of 2020 as a part of the systematic monitoring of suspicious financial projects (“scam projects”*) the NSSMC (National Securities and Stock Market Commission) detected more than 40 projects offering financial services to citizens  in order to further misappropriate funds.

The list of projects is available on the official website of the NSSMC in the section “Protection of investors’ rights” at the link. Currently, the total number of such projects is about 60.

This list includes projects that allegedly operate in the Forex market or with other financial assets, as well as projects that mislead citizens under the guise of cooperation with international financial investment companies, and projects that operate according to the mechanism, which is already familiar to Ukrainians, by providing a large percentage of cashback under issued gift certificates (the infamous B2Bjewelry)

Such individuals are presented to potential victims as well-known and successful financial companies that allegedly have extensive investment experience and an excellent business reputation with headquarters in the world’s international financial capitals.

Some companies have or pretend to have a registration and legal address in the cities of Ukraine. For such companies, the NSSMC will additionally notify law enforcement authorities.

At the same time, the NSSMC has received information from the European regulators on a number of companies under the guise of quasi-successful companies trading in shares and other financial instruments, in order to avoid responsibility in countries where they offer such services, set up their offices in Ukrainian business centers. The NSSMC is currently working with law enforcement to bring persons concerned to justice.

According to the NSSMC the actions of these individuals not only damage the business reputation of our country as legal a sovereign democratic state, but they also scare away potential investors.

Given the activity of suspicious financial projects, the NSSMC together with the legislators is preparing a bill that contains, in particular, standards for strengthening the fight against abuse in capital markets and will enable more effective prevention, to prevent the actions of those who harm citizens.

Once again, we remind you that in order to protect citizens – consumers of financial services, the NSSMC prepared recommendations “10 signs of fictitious investment project”.

Please, send any information on fraudulent activities in the financial market to the NSSMC or to the email: [email protected].

* According to the NSSMC the scam projects includes investments in the quasi Forex market and projects that offer investment services, but aim only at illegal seizure of investors’ funds.