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MANAMA: Two fraudulent institutions claiming to be licensed by Bahrain’s banking regulator have been busted by the authorities.
The Central Bank of Bahrain (CBB) yesterday warned the public against dealing with unlicensed entities that market investment in securities on various platforms, after a reported investment fraud committed in the kingdom by Bridge Capital Advisors and Green Knight Financial Services.
It said that the two entities do not hold any licences issued by the CBB and urged people in Bahrain not to deal with them.
“This warning comes as a result of a reported investment fraud committed in the kingdom by two entities, Bridge Capital Advisors, which claims to be based in Malaysia, and Green Knight Financial Services, which claims to be based in the United States of America, both of whom are not licensed by the Central Bank of Bahrain,” the CBB statement said.
The regulator yesterday urged the public to visit its website, www.cbb.gov.bh, to verify the authenticity of such institutions.
In the past few years, similar warnings have been issued by the Australian Securities and Investments Commission and New Zealand’s Financial Market Authority, where they are believed to have made unsolicited calls or sent emails about investing, financial advice, credit or loans.
In 2018, Malaysia’s Securities Commission had also included Bridge Capital Advisors in its “List of Unauthorised Websites/Investment Products/Companies/Individuals” for engaging in unlicensed capital market activity.
“The CBB also stresses the need for consumers to ensure the utmost care and caution, and take into consideration the risks when investing, dealing or trading in securities or foreign exchange with any person, persons, institutions, companies or websites, including social media.
“They should ensure the companies hold necessary licences from the CBB to engage in such activities.”
In January this year, the CBB busted Bahrain Bitcoin which claimed to be a licensed cryptocurrency trading platform operator.
Complaint
Last year the regulator issued three different warnings against unlicensed financial institutions: United Investment Bank, National Investment Bank and a fraudulent scam involving the impersonation of Cyprus Securities and Exchange Commission (CySEC).
The United Investment Bank fraud was discovered due to an investor complaint, as the firm was running the scam by contacting individuals and marketing services in asset management, brokerage and investment banking.
The CySEC alert in June last year came after investors were approached and asked to pay fees in exchange for help in settling compensation claims against businesses under CySEC’s supervision.
In that scam, contact was often via email 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.
Also in June last year, 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 CBB to undertake trading services, post trade services, depositing certificate of shares and market information services.
avinash@gdn.com.bh
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