New Zealand’s regulator flags up alleged “scam” forex broker

A regulator in New Zealand has told consumers to be on their guard against a financial broker based in the Asian country of Indonesia.

The Financial Markets Authority (FMA), which is responsible for regulating the country’s financial services offerings, said that King Capital Management may be responsible for a fraudulent operation.

King Capital Management is based in the Indonesian city of Jakarta. It offers foreign exchange services through its brokerage, while it also provides a range of other assets including international equities. It also offers contracts for difference (CFDs) and exchange-traded funds (ETFs).

In a statement posted on its website, the Financial Markets Authority said that it was “concerned that King Capital Management may be operating a scam and accordingly advise caution before dealing with them”.

It also published details of King Capital Management’s operations in an attempt to alert consumers to key contact channels for the firm. It said that its address was 23/F Pondok Indah Office Tower 3, J1. S. Iskandar Muda, Jakarta 12310, Indonesia. It also noted that its phone number was +6221 2975 9208, and that its email address was [email protected].

FMA also highlighted a number of bank accounts which are believed to be associated with King Capital Management. It said that accounts with QNB Bank and CIMB NIAGA which have the name “Pt. Inta Trans Aksi” were linked to King Capital Management. An account called Pt. Jaya Mega Int with the bank CIMB NIAGA is also believed to be linked to the firm.

In a sign that even organisations which are allegedly fraudulent can make the most of persuasive websites and other marketing tools, the site of King Capital Management contains a number of strong claims.

Its website was not accessible on Friday, but media reports say that it describes itself as having been launched by “a team of highly experienced professionals who identified a need for bespoke financial services for expatriates, corporations and professional people throughout Asia, Middle East, Africa and Europe”.

New Zealand has a global reputation for low crime and high transparency. However, the website of the Financial Markets Authority makes it clear that it is a hotspot for alleged foreign exchange fraud.

At the start of this month, for example, it released a warning outlining how OneLife, which is also known as OneCoin, an allegedly fraudulent crypto investment service, was hosting events in New Zealand.

“We recommend extreme caution before investing with OneLife or OneCoin as we are concerned they bear the characteristics of a scam, including withholding client funds and promising unrealistic returns”, the FMA said.

“We have received information indicating that OneLife and OneCoin are holding promotional events and seminars in New Zealand offering investment services in breach of New Zealand law.”

“If you have invested with OneLife or OneCoin the Commerce Commission would like to hear from you. You can contact the Commerce Commission via email [email protected] or Freephone 0800 943 600 or by completing the online form”, it added.

Chris Lee

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