Bahrain’s CBB warns public not to deal with unlicensed bank

      Published on Wednesday, 24 July , 2019      51 Views     
Bahrain’s CBB warns public not to deal with unlicensed bank


Bahrain’s financial regulator has warned the public against dealing with a fraudulent institution named United Investment Bank.



The Central Bank of Bahrain (CBB) yesterday said United Investment Bank is a fraudulent unlicensed institution which claims to be a provider of asset management, brokerage and investment banking services in the kingdom.

Warning consumers against dealing with unlicensed financial institutions that market investment in securities in the country through short messaging services (SMS), telephone calls and websites as is the case with United Investment Bank, which operates through www.almuthidbank.com/, the regulator said the activity of promoting financial services to residents in Bahrain falls within the scope of regulated financial services in accordance with the Central Bank of Bahrain and Financial Institutions Law of 2006.

The CBB told the GDN that the fraud was discovered due to an investor complaint.

The firm was running the scam by contacting individuals and marketing services in asset management, brokerage and investment banking, it said.

An investor lost money to the fraud and the CBB is currently examining the magnitude of the case.

Yesterday’s warning by the regulator is the third within the last 30 days, each about a different bogus entity.

On June 28, the CBB issued an alert about scammers posing as representatives of the Cyprus Securities and Exchange Commission (CySEC).

Investors were approached and asked to pay fees in exchange for help in settling compensation claims against businesses under CySEC’s supervision, the regulator said.

In that scam, contact was often via emails which appeared to be genuine – they carried the name, address, official stamp and logo of CySEC and fraudulently copied CySEC officials’ signature.

False promises were made to assist them in claiming compensation for potential damages in connection with dealings they have had with firms, such as online trading platforms offering speculative investment products.

On June 19, Bahrain’s banking regulator issued a warning against dealing with a fraudulent institution named National Investment Bank.

Like United Investment Bank, the fraudulent entity claimed to be licensed by the Central Bank of Bahrain (CBB) to undertake trading services, post trade services, depositing certificate of shares and market information services.

Calling on consumers to ensure the utmost care and caution, the CBB yesterday said they must take into consideration

the risks, when investing, dealing or trading any amounts in securities or foreign exchange with any person, persons, institutions, companies or websites, including social media, and ensuring that they hold the necessary licences from the CBB to engage in such activities”.



The regulator also urged consumers to verify the authenticity of market intermediaries through the register of licensed financial institutions on the CBB website (www.cbb.gov.bh).

Keywords:
Category Government | 2019/07/24 latest update at 7:16 PM
Source : Zawya | Photocredit : Google
52 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Bahrain Today would like to give all of its readers from Gulf and Bahrain and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Bahrain Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Bahrain, the Gulf and the world.


HM King issues Decree 40/2019 King

HM King issues Decree 40/2019

His Majesty King Hamad bin Isa Al Khalifa issued Royal Decree 40/2019 restructuring the Supreme Judiciary Council. The…

HM King thanked by HM Queen Elizabeth II King

HM King thanked by HM Queen Elizabeth II

His Majesty King Hamad bin Isa Al Khalifa received a cable of thanks from Queen Elizabeth II in…

Bahraini King stresses importance of bilateral relations with Iraqi President King

Bahraini King stresses importance of bilateral relations with Iraqi President

Bahrain’s King Hamad bin Isa al-Khalifa held a phone call on Friday with Iraq’s President Barham Salih, a…

Khalifa Bin Salman in the People’s, Nation’s Memory book launched King

Khalifa Bin Salman in the People’s, Nation’s Memory book launched

Yousef Al Hamdan, the author of ”Khalifa Bin Salman in the Memory of the People, Nation” has launched…

GULF TV

Popular in GULF TV

8 Minute Ab workout 2018 VERSION with Tips

701 Views

8 Minute Ab workout: To celebrate more than 65 million YouTube views of the first version of the…

Latest videos in GULF TV

Events

Bahrain events

Lifestyle

Culture

Bahrain Culture, Bahrain, Bahrain News

Sport

Science & Technology

Government

Bahrain Government, Bahrain Government News, Bahrain News, Gulf News, News, Bahrain News