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Special Alerts


SA-80-2003
December 16, 2003

TO: CHIEF EXECUTIVE OFFICER (also may be of interest to Security Officer)
SUBJECT: Deceptive Claims of FDIC Insurance Coverage
Summary: An entity is falsely representing on its Web site that it is a member of the FDIC. The entity, located in New York, New York, may be referred to by multiple names, including Effex Bank, NA; Effex Bank Ltd; Effexbank Bank, Ltd; or Effexbank International Bank Limited.

Please be advised that the Federal Deposit Insurance Corporation (FDIC) was recently notified an entity may be operating a banking business without authorization and is unlawfully advertising FDIC membership on its Internet Web site. The entity may be referred to by multiple names, including Effex Bank, NA; Effex Bank Ltd; Effexbank Bank, Ltd; or Effexbank International Bank Limited. According to the Web site, the entity's office is located in New York, New York, and has a mobile phone number in the United Kingdom. The Web site includes the use of "NA" in one title and states that it has insurance issued by the FDIC. The FDIC does not insure this entity, or any products or services it may offer.

The Office of the Comptroller of the Currency indicates that it has not granted a national bank charter to this entity. In addition, this entity – by any of the multiple names it has been purported to use – has not been authorized to operate in New York or the United Kingdom.

Any information about this entity may be forwarded to the FDIC's Special Activities Section, 550 17th Street, N.W., Room F-4040, Washington, D.C. 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 or (703) 562-2200).

Last Updated 12/16/2003 communications@fdic.gov