Southwest Group to pay $75K for conducting forex exchange transactions without registration

Steffy Bogdanova
July 21, 2020 12:22 pm

The Commodity Futures Trading Commission (CFTC) filed charges against Florida-based Southwest Group, LLC for acting as an unregistered retail foreign exchange dealer. CFTC requires the company to pay a civil monetary penalty of $75,000 for these registration violations.

The CFTC found that between April 2018 and September 2018 Southwest Group offered off-exchange forex transactions in the US on the company’s website. These forex transactions involved Vietnamese Dong or Iraqi Dinar.

CFTC fine

CFTC found that Southwest Group offered customers forex transactions through a “Premium + Layaway Program” financing option. The “program” was financed by Southwest Group while acting as the counterparty to these retail forex transactions.

It took 30 or 45 days for the retail customers to receive their forex instead of the usual two.

The US watchdog urges investors to verify the company’s registration with the CFTC before spending money.

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LeapRate Analyst

Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
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