In view of widespread and continuing inquiries from individuals and companies
who have been approached by parties in connection with offers of participation in
various financial instruments and schemes promising high returns and
unauthorizedly using the name of the International Monetary Fund (IMF), the
Treasurer of the IMF today again warned potential investors to beware of such
schemes. He had already issued warnings in the past (see News Brief Number
94/5, published February 23, 1994 and News Brief Number 94/11, published May
13, 1994). Today he reiterated that the IMF does not issue or guarantee any
obligations called "Prime Bank Notes," "Prime Bank Guarantees," "Bill of
Exchange," or "Bill of Equity," or extend any credit lines through commercial
banks or other agencies. Moreover, the IMF does not guarantee debentures or
other financial instruments issued by a member country or any other entity. It does
not sponsor investment programs, "high-yield financial programs," or issue to
countries or to outside parties an "IMF Number," "IMF Country Registration
Number," or an "IMF Approval Number for Projects."
Other examples of bogus instruments often featured in such schemes which
unauthorizedly use the name of the IMF are:
- fictitious stand-by letters of credit--falsely portrayed as risk-free and sanctioned by
the IMF;
- securities allegedly backed by the IMF; and
- bonds supposedly issued by the IMF.
The IMF is an intergovernmental organization whose financial transactions and
operations are carried out directly with its member countries and only through a
fiscal agency designated by each member for this purpose (such as the member's
Central Bank or its Ministry of Finance). The IMF does not operate through other
agents and it does not endorse the activities of any bank, financial institution, or
other public or private agency.