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Special Alerts

June 24, 2009

TO: CHIEF EXECUTIVE OFFICER (also of interest to Security Officer)
SUBJECT: Garrison Bank Limited May Be Conducting Banking
Operations in Canada or the United States Without Authorization
Summary: The Office of the Superintendent of Financial Institutions (OSFI) of Canada has identified Garrison Bank Limited as an entity that may be illegally operating as a financial institution.

NOTE: Garrison Bank Limited is not related to either Garrison State Bank & Trust, Garrison, North Dakota, USA, or Garrison Bank, Minnesota, U.S.

The Office of the Superintendent of Financial Institutions (OSFI) of Canada has published a "Warning Notice" (Issue No. 85) containing the name Garrison Bank Limited. This Warning Notice can be found at http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=166.

Garrison Bank Limited is a bank incorporated under the International Banking Act No. 4 of 2002, Vanuatu. Information received by OSFI indicates that Garrison Bank appears to be operating in Canada. Subsection 510(1)(a) of the Bank Act (Canada) provides that, except as permitted by Part XII of the Act, a foreign bank shall not engage in or carry on any business that a bank is permitted to engage in or carry on under the Act, or any other business, without authorization. Garrison Bank Limited is not registered with OSFI and has not received such authorization.

Garrison appears to be soliciting business by advertising in Military Officer, a U.S.-based magazine, and by distributing a newsletter entitled Moneymaker News with the bank's name and address below. The bank advertises a time deposit rate schedule, which indicates interest rates ranging from 6.25 percent to 13.00 percent. Accordingly, Garrison Bank Limited appears to be in contravention of the Bank Act.

The following information about Garrison Bank Limited is provided in Warning Notice No. 85:

Garrison Bank Limited
255 Newport Drive
Port Moody, British Columbia, Canada
V3H 5H1
Telephone Number: 1-888-543-9091

Any information you have concerning this matter should be brought to the attention of:

Office of the Superintendent of Financial Institution Canada (OSFI)
Compliance Division
121 King Street West
Toronto, Ontario
Reserve Bank of Vanuatu
PMB 9062
Fax: +678-2423
British Columbia Securities Commission
Enforcement Division
Telephone Number: +1 (604) 899-6605
Royal Canadian Mounted Police
Integrated Market Enforcement Team
Vancouver British Columbia
Telephone Number: 604-331-1200
Securities and Exchange Commission
Office of Investor Education & Advocacy
Washington, D.C., USA
(Reference: H0-1322864)

Information about counterfeit items, cyber-fraud incidents and other fraudulent activity may be forwarded to the FDIC's Cyber-Fraud and Financial Crimes Section, 550 17th Street, N.W., Room F-4004, Washington, D.C. 20429, or transmitted electronically to alert@fdic.gov. Questions related to federal deposit insurance or consumer issues should be submitted to the FDIC using an online form that can be accessed at http://www2.fdic.gov/starsmail/index.asp.

For your reference, FDIC Special Alerts may be accessed from the FDIC's website at www.fdic.gov/news/news/SpecialAlert/2009/index.html. To learn how to automatically receive FDIC Special Alerts through e-mail, please visit www.fdic.gov/about/subscriptions/index.html.

Sandra L. Thompson
Division of Supervision and Consumer Protection

Distribution: FDIC-Supervised Banks (Commercial and Savings)

Last Updated 6/24/2009 communications@fdic.gov