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Warning Against Internet Trading
By Yusrin Junaidi

Bandar Seri Begawan - Highlighting the danger of potential financial predators searching the Internet for victims, the Ministry of Finance in a statement has issued a warning to the public about the dangers of Internet trading.

The Ministry of Finance yesterday in a message said that any person found too be operating or assisting in an unlicensed securities market (including FOREX market) which is not a market of an exchange, could face a maximum fine of up to one million in Brunei dollars or imprisonment for 10 years or both.

The public is urged to report to the Ministry of Finance all possible unlicensed activities or individuals, suspicious website or emails or any information relating to investment advised and services on the Internet and/or if in doubt please contact the Ministry' through the Brunei International Financial Centre (Level 14 of the Ministry of Finance Building) at 2383763/2383790 or bifc@finance.gov.bn.

Members of public is advised to verify with the Ministry of Finance on the licensing status of any company or person before investing in any financial product including persons available online as such products may be offered by unlicensed companies or unauthorised persons/ representative in Brunei Darussalam.

With the advancement of high-speed information technology, the increasing use of the Internet has opened up new risks for the curious, inexperienced and

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most often for the innocent potential investors. Investors who have been told about easy profits by trading in `spot' commodities, indices or foreign currencies using an Internet site will discover that they are required to deposit money as a "Margin for trading".

Margin trading explains the Ministry of Finance is highly risky as it involves investor borrowing from the person who is operating the Internet site (Usually referred to as the broker or brokerage firm). Margin trading resembles trading on overdraft but it's worse if the value of your investment falls.

The person providing with the margin will be expected to deposit money in the account. If don't deposit additional money immediately then the margin provider is often able to sell- your investment without consulting, in order to repay the loan which by this time will illegally spot trading companies who on the other hand will usually claim to be agents or facilitators foreign trading houses.

The Ministry of Finance is promoting a saving culture to encourage the public to plan for their financial future by investing in financial products, the Ministry warns the public to be extremely careful when seeking investment advice or engaging investment services via the Internet.

The public is also advised that currently the Ministry of Finance has not issued any licences to any broker or their agents in Brunei Darussalam to conduct Internet trading in commodities such as gold or foreign currencies (FOREX).

Any person found to be operating or who assists in operating an unlicensed securities market (including FOREX market) which is not a market of an exchange is therefore committing an offence punishable under Section 5(2) of the Securities Order 2001. Which carries a maximum fine of up to B$1,000,000.00 or 10 years imprisonment or both.

Thus members of public are advised to only deal with licensed entities as well as to remain vigilant against illegal entities that offer employment opportunities involving the trading of securities products on the Internet. -- Courtesy of Borneo Bulletin

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