NZ FMA Warns of Suspicious Investment Offered by Unregistered Bank Service Provider

The Financial Markets Authority of New Zealand (NZ FMA) today issued a warning about a suspicious investment, recommending caution when dealing with Sovereign Bank of Aotearoa/Ko Te Peeke o Aotearoa/ Sovereign B O A Ltd/ISKCON Bank (collectively SBOA), an unregistered bank/financial service provider, and its website kotepeekeoaotearoa.com.

SBOA offers unrealistically high returns on investments (e.g., an investment between $1,000 and $3,000 brings a return of $100 per day), but does not detail how it will generate the revenue needed to provide such high returns.

SBOA is promoting its scheme through social media channels, using Facebook and Telegram to send invitations to private webinars.

According to the NZ FMA, SBOA is not a registered bank and it is not supervised by the Reserve Bank of New Zealand or any other New Zealand authority. It is not authorized to use the word ‘bank’ in its name “Sovereign Bank of Aotearoa” or the word “peeke” (means “bank”) in its name ‘Ko Te Peeke o Aotearoa’. It offers lending and other financial services, but it is not registered to provide these, as required by New Zealand’s financial markets legislation.

Due to SBOA’s use of the name Ko Te Peeke o Aotearoa (Bank of Aotearoa), te reo Māori in promotional materials, and its use of the flag of the Te Kara o Te Whakaminenga o Nga Hapu o Nu Tireni (the Flag of the United Tribes of New Zealand), the NZ FMA is concerned it is targeting Māori. 

The New Zealand regulator also noted that statements made by SBOA’s promoters indicate the organization may also be targeting Indian and Chinese communities, and recommended exercising caution when engaging with the SBOA, or any persons claiming to be associated with SBOA.