Posted in Finance, Accounting and Economics Terms, Total Reads: 298
Definition: Prime Bank
This Term is used to describe the top 50 banks or thereabouts across the world. They trade the instruments which include Federal Reserve notes, IMF bonds & the world paper. This term is often used by the fraudsters searching for some legitimacy for their cause. So, be extremely cautious when someone approaches you with reference from a prime bank. These banks programs often claim that the investor’s funds will be used only for the purchasing & the trading of the financial instruments of the prime bank for the huge gains. But unfortunately, these instruments never exist causing people to lose all their money.
If someone approaches you about investing in a so called prime bank program, prime world bank financial instrument or some similar high yield security, always remember that these investments don’t exist. They all are scams. Their programs often claim that the investor’s funds will be used to purchase & trade the prime bank instruments. Promoters can make the schemes seem legitimate by using official, sophisticated & complex sounding terms. The investments can be described as standby letters of credit, debentures, a high-yield investment program, an offshore trading program, bank guarantees or some other kind of variation.
To reassure the investors, the promoters can claim that the instrument is traded, guaranteed or issued by a well-known organization such as the International Monetary Fund (IMF), the World Bank, the International Chamber of Commerce (ICC) or some central bank such as the Reserve bank of India (RBI). Secrecy is yet another tipoff. The promoters of the prime bank schemes often claim that the investment opportunities of this type are only by invitation & are limited to only few wealthy customers. They cite the secrecy if a potential investor asks for the reference & also sometimes they ask the investors to sign a nondisclosure agreement.