Saudi Arabia warns public against illegal forex trading activity

A Saudi money exchanger wears gloves as he counts Saudi riyal currency at a currency exchange shop in Riyadh, Saudi Arabia. (File photo: Reuters)

Saudi Arabian authorities have issued a warning to the public against trading in the unlicensed forex foreign exchange market, according to a statement published by the Kingdom’s central bank.

The Standing Committee for Awareness and Warning, a body within the central bank, warned that there had been a rise in new methods used by companies and unauthorized people to promote illegal businesses.

Some of these methods include using the slogans of government agencies and private parties, and the publication of incorrect statements attributed to government or public figures in advertisements.

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These methods have aimed to mislead members of the public and create the illusion of a legitimate financial institution.

In the statement, the committee noted that the suspicious institutions had been using government branded online advertising to demand contact information and promote investment opportunities with quick financial gains from people who unwittingly clicked links.

Scammers also use social media to promote their services, whether by ads or paid promotions, hoping to ensnare people in their fraud.

The committee called on the public to take the necessary steps in ascertaining the legitimacy of the financial institution that they are in touch with, noting that they must have the necessary licenses to offer investment services.

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Last Update: Thursday, 16 July 2020 KSA 15:36 - GMT 12:36
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