The Indian government has sent a Mutual Legal Assistance Treaty (MLAT) request to Spain,seeking the execution of the ED’s attachment in the OctaFx money laundering case.The federal probe agency has provisionally attached immovable properties valued at Rs 41.73 crore in Spain as part of its ongoing investigation into the OctaFx money laundering case. The properties are allegedly linked to Russian national Pavel Prozorov, identified as the alleged mastermind behind the OctaFx financial operations, and entities associated with the trading platform.
The attachment was executed under Section 5 of the Prevention of Money Laundering Act (PMLA), 2002, through Provisional Attachment Order (PAO) No. 40 of 2024, dated December 3, 2024. The ED has submitted the PAO to the Adjudicating Authority (PMLA) for confirmation, marking another critical step in the crackdown on illicit financial networks.
According to the ED prosecution complaint (PC), a total of 19 properties have been identified as proceeds of crime (POC) in a significant money laundering investigation. All these properties are situated in Barcelona, Spain. Among them, 11 are directly registered under the name of the accused, Pavel Prozorov, while the remaining 8 are linked to companies associated with him and OctaFX. Notably, the alleged mastermind, Pavel Prozorov, is currently residing at Cellerot 11, Sitges, Barcelona, Spain.
As part of its international cooperation under the MLAT, the ED has shared its investigation findings with Spanish authorities,seeking their cooperation to formally seize the assets.
According to the ED’s prosecution complaint (PC), in addition to the 11 identified properties of Pavel Prozorov, the ED has identified five properties in Sitges, Barcelona, and Vilanova i la Geltrú, Barcelona, Spain, linked to Iskedez Solutions FZCO LLC, UAE. The prosecution complaint (PC) also states that Pavel Prozorov has financial interests in this company. Around January/February 2022, OctaFX India Private Limited increased its authorized capital to Rs 15 crore, receiving foreign direct investment (FDI) from Iskedez Solutions FZCO in Dubai. Profits from unauthorized forex trading in India were channeled to this Dubai-based firm through fake import services, facilitated by Indian shell companies.
The investigation also uncovered two properties in Sant Cugat, Barcelona, Spain, registered under M/s Arlear INC OUE, an Estonian company where Prozorov is the primary shareholder and beneficiary. This entity made outward remittances to Indian companies for OctaFX’s promotional campaigns involving celebrities and influencers.
Furthermore, one property of Ambar Soluciones SA, an IT solutions firm owned by Prozorov in Barcelona, was identified in relation to OctaFX’s payment related issues.
“The ED has identified all 19 properties in Barcelona, Spain, during the investigation and is coordinating with Spanish authorities for the legal proceedings to attach them,” stated an official.
In response to the ED investigation and property attachment, including actions by the Spanish government, OctaFX clarified to The Free Press Journal that::-
“Octa Broker has no ownership of or association with any properties attached or investigated by Spanish authorities. We do not provide services in Spain, as explicitly stated in our Customer Agreement. Consequently, we have not received any legal communications from Spanish authorities concerning the attachment of these properties. The same applies to the allegations regarding the so-called ‘mastermind,’ which lack credible evidence. Given these facts, it is impossible for us to provide a legal stance on matters that have no connection to us or our operations.
We also strongly deny any claims of money laundering or engaging in practices that disadvantage traders. As a law-abiding company, we cooperate with local authorities upon receiving duly executed requests with legitimate justification. OctaFX is fully committed to maintaining a fair and secure trading environment and takes all possible measures to combat money laundering and terrorism financing.”
According to ED prosecution Complaint(PC)investigations have revealed that OctaFX generated approximately RS 800 crores in profits from its unauthorized forex trading operations in India between July 2022 and April 2023. OctaFX has been under the ED’s radar for facilitating cross-border financial irregularities and laundering proceeds of crime(POC). This attachment is a pivotal step in the agency’s efforts to dismantle the global financial network allegedly orchestrated by Prozorov and his associates.
