JFC Warns Investors Over Unauthorised Bank

by Robert Lee, Tax-News.com, London

01 September 2003

The Jersey Financial Services Commission has warned investors against dealing with a certain unauthorised bank that is offering banking services through its website and claims to have a connection with the island.

The bank in question, known as Nations Merchant Bank, has not received authorisation to conduct financial services or deposit-taking business within the meaning of the laws the JFC said in a statement, adding: "The Commission has reason to believe that NMB may be claiming to have a connection with the Island when it does not."

Included in the statement is the following text:

The JFC wishes it to be known that:

"The Jersey Financial Services Commission ("the Commission") has issued this public statement under Article 22 of the Financial Services (Jersey) Law 1998, as amended ("the Financial Services Law") and Article 45B of the Banking Business (Jersey) Law 1991, as amended ("the Banking Business Law").

"The entity calling itself NMB has never been registered, or applied for registration, under the Financial Services Law. Therefore any financial service business, as defined in Article 2 of the Financial Services Law and carried out since 1 July 1999, is a breach of Article 6 of the Financial Services Law.

"The entity calling itself NMB has never been registered, or applied for registration, under the Banking Business Law. Therefore any deposit-taking business, as defined in Article 3 of the Banking Business Law and carried out since 1 October 1991, is a breach of Article 7 of the Banking Business Law."

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