UAE authority warns against illegal trading apps: 5 red flags explained

Do you use trading apps to invest? If the app you use turns out to be illegal, you run the risk of being booked under anti-money laundering (AML) laws in the UAE.

The Securities and Commodities Authority (SCA) in the country has issued a warning to investors, urging them to be careful while using trading apps. Some apps are owned by unlicensed firms and can expose you to legal liability. You can also be found in violation of AML laws if you use trading apps for illegal purposes.

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How to spot illegitimate apps

The authority shared some red flags that investors should be aware of when using trading platforms:

1. Apps that are not found on the official website of SCA or other international regulatory bodies are not to be trusted, and can get you into legal trouble.

2. Platforms that guarantee you high profits with little or no risk tend to be illegitimate.

3. If the company name, address or contact information is not clearly listed, it indicates fraudulent behaviour.

4. Apps that operate outside the UAE without proper licence or registration are a huge red flag as well.

5. If ever you are asked to transfer money to individual personal accounts instead of a corporate account, that should raise alarms.

The authority has urged investors to only use official platforms, verify licences and report suspicious apps immediately.

Supreeta Balasubramanian

supreeta@khaleejtimes.com