In recent months, CTIF-CFI found that fraud related to the trade in binary options is being committed. Many investors are approached to enter into contracts with binary options. They have to put money on a prediction of the short-term (ranging from a few minutes to a few days) evolution of the price of assets (share index, foreign currency or commodity). If the prediction proves correct, the investors get their money back and gain a profit. If they are wrong, they lose all of the invested money.

Apart from the fact that binary options are highly speculative and entail great risks, some providers of binary options do not have the required license to operate as an investment company or credit institution, and they may not provide banking and/or investment services in or from Belgium. Nor do they publish a prospectus approved by the Financial Services and Markets Authority (FSMA), as required for each public offering of investment vehicles in Belgium.

Despite their sound appearance, several platforms that trade in binary options are operated by unlicensed companies led by fraudsters that operate without a license, forge the results of the platforms or embezzle the invested funds. In such cases investors never get their money back given that these illegal service providers are generally located abroad.

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After analysing disclosures CTIF-CFI reported several money laundering files to the judicial authorities related to “virtual” diamonds. In recent weeks, the FSMA received several complaints about online platforms where diamonds can be bought and sold. Click here for more information

The number of massage parlours is on the rise in Belgium. The city of Antwerp, for example, noticed an increase by 43 % of the number of new massage salons. There is a shift from Chinese restaurants, which are subject to increasing inspections, to Asian massage parlours. The files reported to the judicial authorities indicated the following elements with regard to the individuals involved: the use of bogus self-employed people and/or front men, dormant companies that suddenly become active, multiple companies are set up simultaneously, multiple companies in name of the same owner, and managers often change and operate the same massage parlours, the registered office is also frequently moved. With respect to the transactions, these files often feature many cash deposits, as well as exchange transaction where small-denomination banknotes are changed into large-denomination banknotes, or transfers to Asia or to individuals of Asian origin. Other offences are also identified in connection with massage parlours, such as forged accounting, arrears in social security, successive bankruptcies, tax evasion, etc.