The Securities Commission of The Bahamas (SCB) has assured its licensees and registrants that an instance of fraud involving the theft of $850,000 from the regulator has not impacted its operation.
According to the commission, it discovered in February that in January 2020 a fraudulent check was used to withdraw $850,000 from its account.
“In early February 2020, following our normal internal processes, the commission discovered an irregularity in its operational bank account,” the commission noted in a press statement released yesterday.
“The appropriate persons at our bank were immediately contacted for an explanation and correction of the irregularity. On the next business day, it was determined that a fraudulent check in the amount of $850,000.00 was cleared through the commission’s account in January 2020.
“That evening, the commission contacted senior persons at our bank and the financial institution where the fraudulent check was deposited. We also reported the matter through the appropriate channels and contacted the police. In turn, the police immediately launched a criminal investigation into the matter.”
The SCB in its statement warned businesses to be vigilant in carrying out its control procedures “to prevent and detect fraud, including the timely completion and review of bank reconciliations”.
A man was brought before court yesterday to answer the charge of attempting to defraud the SCB.
“The matter remains in the hands of the police,” the SCB statement noted.
“To preserve the integrity of the police’s investigation, the commission will not comment any further at this time.
“The commission notes that this matter, including the ongoing investigation, will not impact our licensees and registrants in any way.”
The SCB is responsible for regulating the securities and capital markets and financial and corporate service providers in The Bahamas.