Lithuanians lose money while investing via Cyprus' Royal Forex LTD

  • 2020-02-26
  • BNS/TBT Staff

VILNIUS – Over 100 Lithuanian residents have lost hundreds of thousands of euros while investing via Cyprus company Royal Forex LTD and its investment platforms GMO trading, but the central Bank of Lithuania admits chances of recovering the money are slim, the public broadcaster LRT's investigation division reports.

Royal Forex LTD is registered in Cyprus and operates under a license issued in this country, meaning that the Bank of Lithuania cannot restrict activity of the Cyprus-based main company or its subsidiary in Lithuania, in response to residents' complaints. But the central bank has already turned to Cypriot watchdog institutions and Lithuania's criminal police over this company, and the police institution is carrying out an investigation.

Ilja Kremer, head of Royal Forex Limited's Lithuanian subsidiary, told the LRT the Lithuanian branch does not accept any responsibility for lost funds as it only registers clients. In his words, some clients have already received compensation payouts standing at around 10 percent of the lost money.

Lithuanian banks registered over 230 investment fraud cases last year, and their clients lost around 2.3 million euros, figures from the Association of Lithuanian Banks show.