OctaFX Under Scanner For Laundering Funds Via Malaysian Shell Firms And Offshore Network

Mumbai: The Enforcement Directorate (ED) has intensified its probe against global forex trading platform OctaFX, which has been under the scanner of Malaysian authorities since 2022 for allegedly operating without regulatory approval. Malaysian financial regulators had issued restrictions against the platform after identifying its involvement in unauthorised forex trading and illegal fund collection activities.

According to sources familiar with the case, Malaysian authorities have identified seven Malaysia-registered firms allegedly acting as unauthorised collecting agents for OctaFX Global. Agency uncovered cross-border fund flows and links to other countries where OctaFX has been active through these firms.

Financial intelligence agencies have uncovered evidence of cross-border fund flows linked to OctaFX’s operations. These Malaysian entities are suspected to have routed investor funds to jurisdictions where OctaFX has maintained a presence, evading financial oversight and regulatory frameworks.

“The structure appears to be designed to facilitate cross-border transactions while bypassing official regulatory scrutiny,” a senior official said.

As per official Malaysian records, the following companies were flagged for engaging in unauthorised financial collection on behalf of OctaFX:

* Gavann Entertainment Sdn. Bhd. (1486933P)

* Pro Niaga Consultation (SA0385981W)

* Dass City Holdings Sdn. Bhd. (1486888W)

* Mus Tech Trading Sdn. Bhd. (1472611D)

* Al Mierul International Sdn. Bhd. (1487076A)

* Wan Energy Solution (M) Sdn. Bhd. (1486752D)

* Taqara Solutions Sdn. Bhd. (1486752D)

According to alerts issued by Bank Negara Malaysia (Malaysia’s central bank), all seven companies were officially flagged as unauthorized collecting agents for OctaFX on August 29, 2022. Regulatory findings revealed that these entities, though legally incorporated in Kuala Lumpur Federal Territory and Selangor, were in fact shell firms. Several of them shared common business addresses with other companies, a strong indication of nominee arrangements or virtual office setups, mechanisms often used to conceal true ownership and evade financial scrutiny.

The companies were registered under diverse business categories such as e-commerce, financial consultancy, gaming applications, and digital device trading, but were ultimately identified as shell entities with no genuine commercial activity.

investigation revealed that these companies maintained mule accounts that had been used to facilitate OctaFX Global’s operations. These accounts were suspected to have been linked to OctaFX UK, which operated as a forex trading platform through the widely adopted MetaTrader 4 (MT4) system. The platform had allowed users to trade in foreign currencies, precious metals, cryptocurrencies, and stocks.

According to officials, regulatory bodies also suspected a direct connection between these operations and OctaFX’s activities in India.

The ED is now examining whether any Indian intermediaries were linked to these Malaysian firms or their offshore networks. Investigators are probing the trail of funds routed from India to these Malaysian entities and further to undisclosed offshore destinations. The agency suspected the use of a layered transaction model intended to disguise the origin and beneficiaries of the illicit funds.

OctaFX global denied all allegations and stated that it had no connection with OctaFX UK or with any firms involved in money laundering activities in Malaysia.

Despite the denial, the ED’s investigation revealed that OctaFX India functioned as the Indian arm of OctaFX Global, jointly operating in the country without authorization from the Reserve Bank of India (RBI). The platform allegedly facilitated large-scale movement of illicit funds and laundered investor money through foreign holdings and offshore assets.

ED Attaches Assets Worth ₹131.45 Crore Linked To OctaFX Scam, Including Yacht And Spain Properties

The probe further revealed that Pavel Prozorov, the mastermind of the syndicate, had allegedly used proceeds from illicit forex operations to acquire high-value assets abroad, bypassing the financial regulations of multiple countries. According to officials, these purchases had been executed through layered transactions and a network of overseas shell companies.