The Capital Markets Authority (CMA) has issued a public caution against 15 entities accused of unlawfully and fraudulently soliciting funds from members of the public while purporting to offer investment services without the necessary licensing or approval.
In a public notice dated September 11, the market regulator said the entities are operating unlawfully and urged Kenyans to exercise extreme caution when dealing with investment platforms that have not been authorised to provide financial services.
The entities named in the notice are Global Investment Group (GIG), QVSE, Kore Exchange, Abacus Wealth Management, Brown Advisory Group, B Invest, Bitblock Capital Limited, Maliwave Investments, Monetrix Capital Investments, Twenty-four Hours Pro Expert Trader, Wealth Sharing Group (Opticoin), CBEX, Just Markets, Ultima Cryptocurrency and Lukman-trust fund.
The CMA said the listed entities are currently the subject of active investigations by the Directorate of Criminal Investigations (DCI) in collaboration with the Authority and other law-enforcement agencies.
The warning comes amid growing concerns over investment schemes that target members of the public through online platforms, social media and other channels with promises of attractive returns.
CMA warns against fraudulent investment opportunities
The Authority cautioned Kenyans against dealing with individuals and entities that disguise fraudulent activities as legitimate investment opportunities.
Investors are particularly encouraged to verify the regulatory status of an investment company or platform before depositing money. A licence or regulatory approval is an important first step in determining whether an entity is authorised to provide a particular investment service.
The CMA also urged members of the public and individuals who may have been affected by the activities of the listed entities to cooperate with investigators.
According to the notice, affected persons and those with relevant information should report the matter to the nearest DCI office and assist with the ongoing investigations.
Kenyans urged to verify investment platforms
The latest warning highlights the risks facing investors as more financial and investment services move online.
Potential investors should be wary of platforms promising unusually high or guaranteed returns, especially where they are pressured to deposit funds quickly or recruit other people to earn additional income.
Investors should also avoid sending money to personal accounts or unverified payment channels and should establish who operates a platform before committing their funds.
The CMA’s caution serves as a reminder that investors should conduct due diligence and confirm regulatory approval before investing their money.
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