HOUSTON (Reuters) - Canada's banking and insurance regulator said on Monday it has limited the activity of Stanford International Bank Ltd's office in Montreal to helping clients trying to recover assets.
Allen Stanford, the billionaire Texan at the head of Stanford International Bank, and two colleagues have been charged by the U.S. Securities and Exchange Commission with running an $8 billion fraud involving high-yield certificates of deposits.
Canada's Office of the Superintendent of Financial Institutions said it amended an order dated September 8, 2004, which had authorized Stanford International Bank to maintain an office in Canada.
Now, Stanford's Canadian office is only allowed to act as a liaison between other offices of the bank and any of its clients in Canada who want to pull their investments, the regulator said.
The amendment was effective as of February 20, 2009, and will remain in effect until varied or revoked, the agency said.
Reporting by Anna Driver in Houston; Editing by Tim Dobbyn