Warning after unlawful financial institution defrauded customers

Citizens and residents in the Kingdom are being targeted with SMS and phone calls from a fraudulent financial institution attempting to bamboozle them, it has emerged. An unlicensed financial institution that market investments in securities in the Kingdom, of late, has targeted people through Short-Messaging Services (SMS), telephone calls and websites, the Central Bank of Bahrain (CBB) announced.

The CBB issued the warning as a result of unlicensed activities by the institution under the name of “United Investment Bank”, which provides asset management, brokerage and investment banking services.  The socalled bank claims to be a multi-award winning financial services company located in the Kingdom, which provides its clients with a range of diverse, innovative and Shariah compliant financial products and services.

Tribune found that the bank was allegedly operating under a different name in Saudi Arabia. However, no contact numbers were available for the bank in Bahrain as well as Saudi Arabia. Meanwhile, there were no social media accounts associated with the institution.  “Capitalising on the worldclass experience and through the expertise of its investment teams, the United Investment Bank is a market leader in the delivery of bespoke financial and investment solutions, which address the ever-changing needs of clients, institutional customers and high-net-worth individuals,” the institution states on its website.

The website even lists a commercial registration number in Saudi Arabia while mentioning itself as a closed joint stock company. However, this could not be verified.  The CBB emphasised that the entity was not licensed by it 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.

The CBB stressed the need for consumers to ensure the utmost care and caution, and 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 Central Bank of Bahrain to engage in such activities. The CBB has urged consumers to visit the register of licensed financial institutions on CBB’s website (www.cbb.gov.bh) in order to ensure they are not subjected to cheating by fraud institutions.