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Mon 27 May 2019 10:02 AM

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UAE's SCA warns of false financial company certificates

The Securities and Commodities Authority warned that fictitious entities are making promising yet false offers to customers

UAE's SCA warns of false financial company certificates
The SCA said some companies, which have claimed to be licensed, by the SCA and other regulatory agencies in the UAE were investigated and found to be unlicensed.

Some financial companies are using “false certificates” to try dupe potential customers into believing they are licensed, the UAE’s Securities and Commodities Authority (SCA) has warned.

In a statement, the SCA noted that the warning came following inquiries from the public about the validity of registration and licence certificates presented by promoters and company representatives.

“As these certificates were found to be "false certificates" and the names of the companies mentioned therein are not registered or licensed by the SCA, and that the investment offers that are marketed and promoted by the delegates of these companies are "fake offers" aimed at investors, especially individuals,” the statement said.

The SCA statement added that some companies, which have claimed to be licensed, by the SCA and other regulatory agencies in the UAE were investigated and found to be unlicensed.

“In most cases it turns out that these companies are ‘fictitious entities’ that carry out financial fraud and communicate with individuals through several means,” the SCA said. “These companies introduce seductive offers, promises to ear high returns and to get rich quickly, and these claims are backed by forged documents and certificates of licences.”

Additionally, the SCA said that representatives of these fraudulent companies often encourage people to invest immediately, without giving the customer time to consider the offer, and push them throughout the day to invest.

Investors can review licensed and registered companies on the website of the SCA and other regulatory bodies.

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