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Notice To Members 84-69

Offshore Shell Bank Licenses Registered in Majuro, Marshall Islands

Published Date:

IMPORTANT

PLEASE DIRECT THIS NOTICE TO ALL SALES, COMPLIANCE AND CREDIT OFFICERS AND PARTNERS

TO: All NASD Members and Other Interested Persons

Attached are copies of notices issued by the Comptroller of the Currency that relate to certain direct obligations that either may be worthless or have not been honored by a number of offshore bank licenses registered in Majuro, Marshall Islands. Because the NASD understands such checks have been used to open accounts with broker/dealers, in order to avoid undue risk of loss, members should exercise extreme caution prior to any financial involvement with these entities.

The NASD has been informed that there is no affiliation between Sterling Bank and Trust Company of Majuro, Marshall Islands which is referenced in the attached notice as not honoring its obligations, and Sterling National Bank and Trust Company, 540 Madison Avenue, New York, New York.

Questions concerning this notice may be directed to I. William Fishkind, Assistant Director, Surveillance Dept. at (202) 728-8405.

Sincerely,

John E. Pinto, Jr.
Senior Vice President
Compliance

Attachments

BANKING ISSUANCE

Comptroller of the Currency Administrator of National Banks

Type: Banking Circular

Subject: Offshore Shell Banks

TO: Chief Executive Officers of National Banks; all State Banking Authorities; Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal Deposit Insurance Corporation; Conference of State Bank Supervisors; District Deputy Comptrollers; Examining Personnel

RE: Trans-Pacific Commerce Bank, Ltd.
Majuro, Marshall Islands 96960

This Office has received information that certain direct obligations on the subject entity may be worthless and that this entity may be operating illegally in the United States. Any information which you may have regarding the subject should be brought to the attention of:

Enforcement and Compliance Division (202-447-1818) Office of the Comptroller of the Currency Washington, D.C. 20219

C.T. Conover
Comptroller of the Currency

BANKING ISSUANCE

Comptroller of the Currency Administrator of National Banks

Type: Banking Circular

Subject: Offshore Shell Banks

TO: Chief Executive Officers of National Banks; all State Banking Authorities; Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal Deposit Insurance Corporation; Conference of State Bank Supervisors; District Deputy Comptrollers; Examining Personnel

RE: Sterling Bank, & Trust Co.
Majuro,Marshall Islands 96960

This Office has received information that certain direct obligations on the subject entity have not been honored. It is recommended that extreme caution be exercised when any involvement with this entity is contemplated. Further, we have been informed by Sterling National Bank & Trust Co., 540 Madison Avenue, New York, New York, that it does not have any bank office in Majuro, Marshall Islands, and that there is no affiliation with Sterling Bank & Trust Co. of Majuro. Any information on the subject entity should be reported promptly to:

Enforcement and Compliance Division (202-447-1818) Office of the Comptroller of the Currency Washington, D.C. 20219

C.T. Conover
Comptroller of the Currency

BANKING ISSUANCE

Comptroller of the Currency Administrator of National Banks

Type: Banking Circular

Subject: Offshore Shell Banks

TO: Chief Executive Officer? of National Banks; all State Banking Authorities; Chairman, Board of Governors of the Federal Reserve System; Chairman, Federal Deposit Insurance Corporation; Conference of State Bank Supervisors; District Deputy Comptrollers; Examining Personnel

RE: Offshore Shell Bank Licenses Registered in Majuro, Marshall Islands

This Office has received information that 101 offshore shell bank licenses have been registered in Majuro, Marshall Islands. To avoid a possible undue exposure to loss, it is recommended that a careful verification of the financial integrity of all parties concerned, including the licensed entity, be made before an involvement occurs. Information about any questionable transaction should be brought to the attention of:

Enforcement and Compliance Division (202-447-1818) Office of the Comptroller of the Currency Washington, D.C. 20219

C.T. Conover
Comptroller of the Currency