Cambodia's elite using unlicensed brokers.
Posted: Sun Mar 12, 2017 12:58 pm
A look inside Cambodia's derivatives trading brokerages, many of which are not yet regulated by the Securities and Exchange Commission of Cambodia (SECC). In the meantime, Cambodia's elite are keeping the illegal operations in business with no questions asked.
Brokers trading without licences
Tue, 7 March 2017
Kali Kotoski
Text messages, in which a broker at an unlicensed derivatives trading firm purportedly informs one of Prime Minister HE’s daughters that her trading account had been “topped up” with over half a million US dollars, were leaked yesterday. The texts raised questions about the government’s resolve in clamping down on unregulated derivatives brokerages, which cater largely to the country’s wealthy elite.
The Securities and Exchange Commission of Cambodia (SECC) has made slow progress in reining in unlicensed operations since issuing its first derivatives trading licence nearly a year ago. To date, only six licences have been issued, while at least as many unlicensed firms continue to openly advertise forex and metals trading services.
Some have deceptively masked their legal status, while others have partnered with licensed local derivatives firms – a move that provides temporary shelter from regulatory scrutiny and allows them to continue to chalk up high-profile clients, despite the illegality of their operations.
Among these is Askap Gold Investment Co Ltd, a derivatives brokerage mentioned in a series of alleged leaked text messages distributed to the local media last week by former opposition leader Sam Rainsy.
In correspondence dated November 11 and 23, Askap Gold informed Hun Maly, the youngest daughter of Prime Minister HE, via SMS, that the company had made two deposits of $300,000 each into her account. The number within the log was saved under the name “Adam”.
Contacted yesterday, Adam, whose real name is Cheng Jin Chuen, the chief information officer of Askap Gold, confirmed the transactions and the authenticity of the text messages.
“We processed two transactions of $300,000 each on November 11 and 23 to Maly,” he said. “She is one of our main clients.”
When contacted yesterday, Maly hung up on a Post reporter and did not respond to follow-up calls and messages.
Chuen admitted that Askap Gold continues to operate without SECC approval, but said the company was in the process of applying for a licence...
http://www.phnompenhpost.com/business/b ... t-licences
Brokers trading without licences
Tue, 7 March 2017
Kali Kotoski
Text messages, in which a broker at an unlicensed derivatives trading firm purportedly informs one of Prime Minister HE’s daughters that her trading account had been “topped up” with over half a million US dollars, were leaked yesterday. The texts raised questions about the government’s resolve in clamping down on unregulated derivatives brokerages, which cater largely to the country’s wealthy elite.
The Securities and Exchange Commission of Cambodia (SECC) has made slow progress in reining in unlicensed operations since issuing its first derivatives trading licence nearly a year ago. To date, only six licences have been issued, while at least as many unlicensed firms continue to openly advertise forex and metals trading services.
Some have deceptively masked their legal status, while others have partnered with licensed local derivatives firms – a move that provides temporary shelter from regulatory scrutiny and allows them to continue to chalk up high-profile clients, despite the illegality of their operations.
Among these is Askap Gold Investment Co Ltd, a derivatives brokerage mentioned in a series of alleged leaked text messages distributed to the local media last week by former opposition leader Sam Rainsy.
In correspondence dated November 11 and 23, Askap Gold informed Hun Maly, the youngest daughter of Prime Minister HE, via SMS, that the company had made two deposits of $300,000 each into her account. The number within the log was saved under the name “Adam”.
Contacted yesterday, Adam, whose real name is Cheng Jin Chuen, the chief information officer of Askap Gold, confirmed the transactions and the authenticity of the text messages.
“We processed two transactions of $300,000 each on November 11 and 23 to Maly,” he said. “She is one of our main clients.”
When contacted yesterday, Maly hung up on a Post reporter and did not respond to follow-up calls and messages.
Chuen admitted that Askap Gold continues to operate without SECC approval, but said the company was in the process of applying for a licence...
http://www.phnompenhpost.com/business/b ... t-licences