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Special Alerts


SA-37-2003
 July 3, 2003
TO: CHIEF EXECUTIVE OFFICER (also may be of interest to Security Officer)
SUBJECT: Deceptive Claims of FDIC Insurance Coverage
Summary: Two entities are falsely representing to potential customers on their Web sites that they are members of the FDIC. The two entities are Citi Trust Bank, Grand Cayman, Cayman Islands, and Banquedenationale Bank, Hong Kong, a Special Administrative Region of China.

The Federal Deposit Insurance Corporation (FDIC) was recently notified that two entities are unlawfully advertising FDIC membership on their respective Internet Web sites. The Web sites are reportedly operated by Citi Trust Bank (CTB) and Banquedenationale Bank (BNB). The Web sites for these two entities indicate that their main offices are located in Grand Cayman, Cayman Islands, and Hong Kong, a Special Administrative Region of China, respectively. Each of the Web sites includes the phrase "Member FDIC." Please be advised that the FDIC does not insure these entities nor any products or services offered by them.

The Cayman Islands Monetary Authority (CIMA) and the Hong Kong Monetary Authority (HKMA) have verified that neither entity is licensed or otherwise authorized to offer banking or investment services by the CIMA or the HKMA. The CIMA reports that CTB is not registered with the Cayman Islands Companies Registry, and the HKMA reports that BNB does not have a physical office in Hong Kong. Further information about CTB and BNB can be found at [link is no longer alive] and http://www.info.gov.hk/hkma/eng/press/2003/20030619e3_index.htm, respectively. Any proposed transactions involving CTB or BNB should be viewed with extreme caution.

Any information about these entities may be forwarded to the FDIC's Special Activities Section, 550 17th Street, NW, Room F-4040, Washington, DC 20429, or forwarded electronically to alert@fdic.gov.

For your reference, FDIC Special Alerts may be accessed from the FDIC's Web site at www.fdic.gov/news/news/SpecialAlert/2003/index.html. To learn how to automatically receive FDIC Special Alerts, Financial Institution Letters and other announcements through e-mail, please visit www.fdic.gov/news/news/announcements/index.html.

Michael J. Zamorski
Director

Distribution: FDIC-Supervised Banks (Commercial and Savings)

NOTE: Paper copies of FDIC Special Alerts may be obtained through the FDIC's Public Information Center, 801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342, option 5, or (703) 562-2200).

Last Updated 3/15/2004 communications@fdic.gov