Central Bank of Bahrain warns users about unlicensed entities

By Rahul Vaimal, Associate Editor
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Central Bank of Bahrain - CBB
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Bahrain’s Central Bank (CBB) has warned all consumers against dealing with unlicensed financial institutions that claim to offer investment in securities.

The warning has been issued after the apex bank received information on investment fraud committed in the country by “Bridge Capital Advisors” which claims to be based in Malaysia and “Green Knight Financial Services” which claims to be based in the United States of America, both of which are not licensed by the Central Bank of Bahrain.

“Bridge Capital Advisors” is a well-known offender across the globe as similar warnings have been published by the Australian Securities and Investments Commission and New Zealand’s Financial Market Authority pertaining to the institution in 2018.

Malaysia’s Securities Commission had also included this company, by name, in its “List of Unauthorized Websites/Investment Products/Companies/Individuals” for engaging in unlicensed capital market activity.

The Central Bank has advised the consumers to make sure that utmost care and caution are taken into consideration when investing, dealing or trading any amounts in securities or foreign exchange with any person, persons, institutions, companies or websites, including social media. Users are also expected to ensure that the institutions they engage with have the necessary licenses from the relevant regulators, both within the Kingdom of Bahrain and beyond, to engage in such activities.

A register of licensed financial institutions is available on the CBB’s website.