The National Union of Futures (NFA) has issued a notification to the Futures Committee (FCMS) and the introduction of brokers (IBS) on boarding new customers.
NFA has recently experienced various incidents where people have opened trading accounts using falsified customer recognition documents and/or made false performances about entities and people who do not exist. Once these accounts are created, customers have been involved in commercial activity that has led to major profit or loss changes with immediate requests to withdraw funds and/or failures to cover the margins.
NFA seeks to ensure that all members of FCM and IB know this activity and encourage them to examine it when boarding new accounts.
Last month, the US Futures Market Department issued a consulting to inform IBS and FCMS on the importance of increasing attention when boarding a new person or client of the company.
The department has identified several seemingly suspicious actions by some new customers who have to watch out for IBS and FCMS to board a customer or just created an account, including:
- use of misleading documents, such as falsified passports and account/bank declarations;
- submission of false information and/or certificates;
- Representing the entities and people who do not exist.
- negotiation in a manner leading to large changes in profits or losses in an account;
- directly or immediate requests for withdrawal of funds through cable transfer.
- Customer not communicating with FCM/IB when asked questions.
- Failures to cover marginal calls.
- failures of compliance with a request for testimony from the department; and
- A person’s plastering for an interview in the department.