advertisements in Bermuda for prime bank guarantees, the authority revealed yesterday.

Mr. Peter Sousa, manager, investment services division, said: "Yes we are aware of the advertisements and we are making some inquires.'' Mr. Sousa said it would not be prudent to describe the nature of the inquiries.

An advertisement for prime bank guarantees has appeared in The Royal Gazette citing an Encino, California investment bankers' company, Venture Capital Consultants.

Venture Capital is also advertising for a representative to act as liaison in the processing of financial applications.

Last week, the BMA issued a warning to people interested in investing in "prime'' bank schemes.

Schemes involving the issuance, trading, or use of so-called prime bank and similar financial instruments may be fraudulent, according to a release last week from the BMA.

The BMA last week advised "extreme caution'' when considering investing in such entities.

Prime bank guarantee or standby letter of credit fraud has cost investors around the world more than $1 billion, according the International Chamber of Commerce.

International regulators and agencies, including the Bank of England, the UK Investment Management Regulatory Organisation Ltd., the US Federal Reserve, and the US Securities and Exchange Commission, have previously issued strong warnings against prime bank fraud.