MEcon (Ministerio de Economía y Finanzas de la Nación Argentina) – the Argentinian financial regulator recently issued warning to several brokers. Offering forex trading in Argentina is forbidden and there are tight governmental controls over what can and cannot be offered to local clients. Funding accounts with foreign brokers is extremely difficult as transferring money outside of Argentina is highly restricted.
MEcon issued warning to Saxo Bank, anyoption and MFX (Master Forex) using the following language:
- SECURITIES AND EXCHANGE COMMISSION OF ARGENTINA RESOLVED: Urging Saxo Bank to immediately cease its operations throughout the territory of the Republic of ARGENTINA and invite all people in general or certain sectors or groups, to perform any legal act with all securities and brokerage activity in the public offering, for not having the required authorization for that purpose.
- SECURITIES AND EXCHANGE COMMISSION OF ARGENTINA RESOLVED: Urging MFX Broker / Master Forex to immediately cease all operations and public offering trading in futures and currency markets and all activities with securities brokerage, while not authorized by this SECURITIES AND EXCHANGE COMMISSION; as well as any public performance of that activity, by the means provided in art. 16, Law No. 17,811, containing statements deceptive, misleading or confusing to the public. Resolution 1/2012 (UIF) – MONEY LAUNDERING AND TERRORIST FINANCING – Adequacy of FIU legislation enactment of Law No. 26,683 and the provisions of Resolutions Nos.. 50/11, 51/11, among others.
- Urging MFX Broker / Master Forex. to incorporate into the website the following wording: “MFX Broker / Master Forex does not accept Argentinian clients. The services offered by MFX Broker / Master Forex are not intended for Argentinians.”
- SECURITIES AND EXCHANGE COMMISSION OF ARGENTINA RESOLVED: Urging to ANYOPTION PAYMENT SERVICES LTD. to immediately cease its operations in the territory of Argentina, any public offering of trading futures contracts in the tender offer through any media in the country, to act as intermediaries without authorization, committing the alleged offense of Article 16 of Law No. 17,811, under the provisions of Article 2 of Annex ap. Decree 677/01- 8th inc. c) and 9 of Chapter XVII and 29, subsection b) 1) of Chapter XXI of the RULES (NT 2001).
- Urging ANYOPTION PAYMENT SERVICES LTD. to incorporate into the website the following statement: “anyoption PAYMENT SERVICES LTD. does not accept Argentinian clients. The services offered by anyoption PAYMENT SERVICES LTD. anyoption HOLDINGS LTD and are not intended for Argentinians. “
When questioned about it Enrique Finkelstein, Senior Vice President & Regional Chief Commercial Officer Latin America, Spain & Portugal, Nordic, UK & South Africa Saxo Bank A/S, explained what happened:
“On 26 April 2011 Saxo Bank launched a global campaign informing about the launch of four futures contracts for online and direct trading, tracking the Bovespa Index and USD/Brazilian Real currency cross.
We do not and did not have any Argentinian PR Agency. The global campaign triggered a request for an interview by El Cronista who contacted the Latin PR agency.
Our Latin desk received 5 questions from El Cronista via our PR agency. One of the questions was whether Argentinian investors could invest in the new products. It was confirmed that Argentinians would be able to invest through our global website. The answer given was purely fact based and for informative purposes as the opening of accounts by Argentinian citizens is not forbidden under Danish rules and regulations.
Unfortunately, the journalist took a local approach when writing the article which seems to have let the Argentinian authorities to believe that we had proactively promoted the products in Argentina.
It is therefore important to stress that Saxo Bank did not have and has no intention of being engaged in a public offering of financial products in Argentina through advertising in newspapers, television, radio, seminars, expo’s or other type of direct or indirect communication towards the Argentinian territory.
Saxo Bank is, however, requested by several media across the world to comment not only on Economic and Financial situations or events but also on new releases and developments that it implements on its platforms and services. The above mentioned interview is part of this common practice.
Saxo Bank never followed up on this interview with any advertising activity specifically directed at the Argentinian market.”
Saxo Bank has at no point in time since the global press release in April 2011 been approached by the Authorities and has not been given the opportunity to correct this misunderstanding. Today is the first time we become aware of this Resolution.
Obviously, we very much regret this Resolution which to the best of our knowledge is based on unfortunate misunderstandings that we will try to clarify with the authorities.”