The FSC yesterday issued a public warning on Reincarnation Bank, an unlicensed bank operating a web-site owned by 2i Ltd, a Gibraltar Company.

The FSC warning follows the successful application by the FSC to the Supreme Court for an injunction against the defendant from disposing of any assets or monies over which he may have control .

The FSC maintains that Reincarnation Bank was holding itself out as deposit-taker under the Financial Services (Banking) Act without holding an authorisation to do, which is an offence under that Act. In order to protect any depositors who may have placed funds with this institution the FSC sought to protect the monies already at the account and seek further disclosure of the affairs of the defendant.

The bank’s website claimed that “Reincarnation Bank is a banking facility for all believers of Reincarnation. The Bank offers a safe and secure management system for its clients, a place they can leave behind their assets and commodities for the return into their next life.”

Commenting on the injunction the FSC Chief Executive, Marcus Killick said: “We were able to take such swift action to protect depositors as a result of cooperation from federal regulators in the USA. This once again emphasises the vital importance of international regulatory cooperation.

Whilst the activities of the Bank were, when we intervened, small and its business model somewhat unusual, to put it mildly, the fact that we were able to act so quickly demonstrates Gibraltar’s ability to act in an effective manner to protect the integrity of its financial sector.”