The Czech National Bank (CNB) releases Investor Alert List (as at 26/3/2025)

In March 2025, the National Bank of the Czech Republic (CNB) issued its latest 'Investor Alert List,' which was provided primarily to protect the public from potential financial fraud and unauthorized investment activities in the Czech Republic.

The alert list covers all kinds of entities and individuals engaged in suspicious financial operations, including unlicensed investment advisers who provide financial advice without proper authorization. Unlicensed investment advisers often lure investors with false high-return commitments, resulting in the loss of their property. In the past, there have been cases where such unlicensed advisers persuaded investors to put their savings into the so-called 'guaranteed profit' plan and then disappeared with funds.Another category on the list is related to investment funds that do not meet regulatory requirements. CNB has strict regulations on investment funds, including those related to transparency, risk management, and proper information disclosure. Funds that do not meet these criteria will be marked on the warning list. As of May 2024, CNB has been closely monitoring the activities of the country's investment funds, and any funds that do not comply are now part of this warning.In addition, CNB's Investor Alert List highlights entities involved in cryptocurrency-related scams. In early 2024, law enforcement agencies in Austria, Cyprus, and the Czech Republic jointly discovered a major cryptocurrency scam. The fraudster claims to be a legitimate online trading company, promising to provide a revolutionary new cryptocurrency supported by unique software and algorithms. They managed to raise millions of dollars from investors and then suddenly shut down their online business. Such entities are now on the alert list for March 2025.