US regulator fines ZuluTrade CEO $30,000
Mirror trading platform ZuluTrade has agreed a settlement with the US National Futures Association (NFA) regarding possible violations of some requirements under its IB registration. The complaints relate to accounts opened for individuals from US sanctioned countries, inadequate compliance with anti-money laundering rules, and failure to adequately supervise the firm’s employees, agents and operations. The firm and its CEO Leon Yohai Giochais agreed to a $30,000 fine payable upon any future application for NFA membership.

Popular copy Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term ZuluTrade has reached a settlement deal with the American regulatory body supervising Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term dealers and introducing brokers, the US National Futures Association (NFA).

The NFA's Business Conduct Committee has announced that it has accepted an offer from ZuluTrade and its CEO Leon Yohai Giochais and fined them $30,000, payable upon any future application for NFA membership.

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Background

ZuluTrade was accused of possibly violating some of its requirements as a registered IB according to an NFA document filed April 28, 2016.

The first count of the complaint was regarding failure to comply with minimum capital requirements. The background to this is that back in 2014 ZuluTrade was fined $350,000 for opening accounts for individuals from US sanctioned countries.

The second count of the complaint is regarding failure to implement an AML (anti money laundering) program. The issue here was that Zulu relied on the forex brokers it was acting as IB for to handle its customer identification requirements. The problem is that two of these brokers were not regulated in the US and therefore did not fall under the jurisdiction of the NFA which considers it unacceptable.

The third count of the complaint is regarding failure to adequately supervise the firm’s employees, agents and operations. Here the main issue was this: “As evidenced by the capital and AML deficiencies alleged in Counts I and ll, above, Zulu and Giochais failed to adequately supervise Zulu’s operations to ensure that Zulu was in capital compliance, and that the firm adequately reviewed customers’ accounts for compliance with CIP and NFA Bylaw 1101, and for suspicious activity.”