Recently, the Idaho Department of Finance issued a Cease and Desist Order against the Excelsior International Bank Corp., a West Indies bank soliciting deposits on the Internet. The bank's owner John Visconti, and Chief Executive Officer Hilford A. Murrell are also named in the Order.
The Order requires that the bank and its agent stop soliciting deposits from Idaho residents. According to the Department of Finance, Excelsior International Bank was attempting to lure depositors to transfer funds with promises of high interest rates and secrecy. However, Excelsior is not chartered to operate as a bank or any other form of financial institution in the State of Idaho and is not insured by the FDIC or any other state or federal deposit insurance. It is illegal for any person or company to engage in banking in Idaho without a state or federal charter. Also, deposits in uninsured banks can be lost completely with no compensation for the consumer.
This is the fourth enforcement action taken this year against unlicensed, unchartered and uninsured banks on the Internet. Previously, European Union Bank, Netware International, and FocusInternational.com, Ltd., have all been issued Cease and Desist Orders.
Many legitimate banks that are chartered and insured advertise on the Internet. However, before you do any business with a bank make sure to check that it is both insured and chartered. Contact your the authority which regulates banks in your state as well as the FDIC to find out if a bank holds a national or state charter and if it is properly insured. Remember, if a bank isn't chartered and insured you could lose all of your deposits and have no way to get the money back.
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