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Sat, 01 November 2014 15:02:03
Sri Lanka warns against illegal forex trading
30 May, 2012 17:03:51
May 30, 2012 (LBO) – Sri Lanka’s central bank has warned public against engaging in illegal foreign exchange transactions, which promises to give higher returns.
The monetary regulator said individuals and firms are advertising their services in print, online and electronic media to lure unsuspecting investors.

“These agents.. often exhort, people to trade in foreign exchange, depositing an initial investment in Sri Lanka rupees, with a company, proprietorship concern or individual in Sri Lanka to be transferred later into an online account or, payment through credit, debit or any other electronic funds transfer card direct to an online account opened in the name of the investor,” the Colombo-based bank said Wednesday.

The bank said foreign exchange transactions or remitting cash outside Sri Lanka, needs the prior approval of the Exchange Control department.

Those violating exchange control laws run the risk of being punished, the bank said urging people to stay away from such schemes.

Forex trading is a high risk activity, often offered with high levels of leverage, which can wipe out the entire amount 'invested' in a few minutes.

Analysts say in the past illegal forex trading outfits have engaged in fraudulent practices to hide losses and persuade unsuspecting customers keep trading by selling contra positions instead cutting losses.

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READER COMMENT(S)
3. Noel Oct 22
Thank you for the news. However the google ads on the page shows adds on Forex because the content of this is based on Forex.To Admin: Please look into this matter, as it's likely someone might misinterpret forex as a legal thing as as there's an ad on LBO. Thanks.
2. upul Jun 02
Central Bank should educate the public about these schems with out waiting until they lost everything
1. Siripala Jun 01
Whatabout the ad in this page. Who is paying for it?