On 7 May 2020, the UK Financial Conduct Authority (FCA) issued investor warnings against several unlicensed and therefore illegally operating brokers. The FCA warned investors that they would probably be scammers. That’s all the FCA ever does. This is already the highest level of warnings. The FinTelegram Research Team took a closer look at the three schemes Blix Group, Infinitrade, and Goldman Banc. What these scams have in common is that they all are facilitated by the Cyprus-based payment processor Praxis.
Praxis Chashier System Ltd (OpenCorporates), the operator of the payment platform Praxis Cashier (www.praxiscashier.com) was founded in 2016 by Amit Klatchko (LinkedIn profile) and has since then positioned itself in the scammers’ choice for its easy to connect with. KYC/AML/CTF are apparently not well-known terms with Praxis. Potential customers of brokers should therefore not enter into a business relationship with providers who have integrated Praxis as payment processors.
It can happen with every payment processor that you have rotten eggs (i.e. scammers and fraudsters) among your clients. Even the best KYC/AML procedures cannot protect against this. However, it is not acceptable that most scams are facilitated by the ever same group of payment processors. And Praxis is one of these notorious payment processors. The company obviously does not apply any KYC/AML checks at all. Otherwise, it could not be that such an accumulation of scams occurs.
Even if Praxis is not a regulated payment processor itself, KYC/AML must be applied. Since this does not happen, licensed partners of Praxis should ask themselves whether they can or may work with this company without violating regulations. The regulators, on the other hand, should take urgent action and subject practice to appropriate review. We know from various criminal cases in several jurisdictions that Praxis also acts as a facilitator of scams.
Would the regulators and law enforcement agencies please intervene before thousands more consumers and investors are defrauded by practice clients?
Please report Praxis Cases
In case you do have information on Praxis clients that operate scams and/or illicit businesses we would be more than happy to hear from you. You can share your information using our whistleblower system.