Fraudulent Scheme Illegally Uses Name Of Central Bank Of the Bahamas

by Amanda Banks, Tax-News.com, London

17 January 2005

The Central Bank of the Bahamas has reported that its name and those of certain employees have been used in connection with a fraudulent internet-based scheme.

Under the scheme, perpetrated under the name of ‘Banco de Paribas’, the ‘Caribbean Central Bank’ or the ‘Caribbean Financial Authority’, the operators require an ‘International Guarantee Bond’ be taken out with the Central Bank of The Bahamas, which will supposedly issue a ‘Letter of Guarantee’ as insurance against any loss when funds are transferred from the Caribbean.

The Central Bank of The Bahamas warns that neither the ‘Caribbean Central Bank’ nor the ‘Caribbean Financial Authority’ actually exist, whilst ‘Banco de Paribas’ is not licensed to operate within the Bahamas.

Although the scheme itself is not entirely new, the Central Bank of the Bahamas revealed that it is the first time that its name has been used fraudulently in connection with such a scam.

The Bank warned investors to exercise caution when supplying information over the internet, and to report any suspicious schemes to the Inspector of Banks and Trust Companies.

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