Banking fraud busted | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Banking fraud busted

The Central Bank of Bahrain (CBB) has warned the public against dealing with a financial institution, which is accused of fraud. The financial institution named ‘National Investment Bank’ has been targeting residents of the Kingdom, according to CBB authorities. Despite having no license issued by the CBB to operate as a financial institution, it has been undertaking trading services, post trade services, depositing certificate of shares and market information services.

The phone number listed by the institution is out of service. On the website, it promises to provide “ultra-low spreads” and encourages the website visitors to “start trading now”. “National Investment Bank is a fully licensed trademark of Bahrain Capital Markets Authority,” the institution states on its website.

Issuing a warning against the institution and customers falling prey to its fraudulent schemes, the CBB stated yesterday: “The Central Bank of Bahrain (CBB) would like to warn customers against dealing with unlicensed market intermediaries that market investments in securities in the Kingdom through short message services (SMS), telephone calls and websites.”

“This warning comes as a result of a fraudulent institution under the name of ‘National Investment Bank’, which is claiming to be licensed by the Central Bank of Bahrain to undertake trading services, post-trade services, depositing certificate of shares and market information services,” it stated.

“The CBB also wishes to emphasize that the above-mentioned entity is not licensed by the CBB and that the activity of promoting financial services to residents in the Kingdom falls within the scope of regulated financial services in accordance with the Central Bank of Bahrain and Financial Institutions Law of 2006. 

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