Erscheinung:17.02.2023 | Topic Unauthorised business, Consumer protection Trading platform front-management24.com: BaFin investigates Front Management LLC
In accordance with section 37 (4) of the German Banking Act (Kreditwesengesetz – KWG), BaFin would like to make clear that Front Management LLC, New York, United States of America, does not hold authorisation under the KWG to conduct banking business or provide financial services. The company is not supervised by BaFin. BaFin has been made aware that customers of “Barclay Private Equity”, another company that BaFin is already investigating, have been contacted and directed to the website of Front Management LLC. There is evidence that this is a case of identity theft against a US company.
The information provided on the website front-management24.com and the information and documents available to BaFin give reasonable grounds to suspect that the platform is being used to conduct banking business and/or provide financial services in Germany without the required authorisation.
Companies that conduct banking business or provide financial services in Germany require authorisation under the KWG. However, some companies operate without the necessary authorisation. Information on whether a particular company has been granted authorisation by BaFin can be found in BaFin’s database of companies.
BaFin, the German Federal Criminal Police Office (Bundeskriminalamt – BKA) and the German state criminal police offices (Landeskriminalämter) recommend that consumers seeking to invest money online should exercise the utmost caution and do the necessary research beforehand in order to identify fraud attempts at an early stage.
