Illegal deposit-taking activities worry Bank of Botswana

Gaborone, Botswana (PANA)   -   The Bank of Botswana Tuesday expressed worry over escalating illegal money-taking schemes being practiced by a legally registered organisation. 

“Bank of Botswana (Bank) is informing the public that Botswana Fund Motshelo is illegally taking deposits from members of the public and operating a pyramid scheme business across the country,” an official statement issued here reaching PANA warned.

The Bank has accordingly directed the promoters of Botswana Fund Motshelo to cease and desist from transacting the illegal business scheme.

According to the bank, pyramid schemes and other illegal deposit-taking activities are unlawful in Botswana  and contravene Section 3(1) of the Banking Act (CAP. 46:04) (Act).

“This provision of the Act restricts transacting banking business and/or advertising for or soliciting deposits of money solely to licensed banks.”

 “It is a criminal offence, punishable by law, for any person to promote the aforementioned illegal activities in Botswana, as that constitutes unfair trading practice. Section 5(1) of the Act empowers the Bank to investigate a person or entity suspected to be conducting unlicensed banking business and/or illegal deposit-taking activities.”

The Bank of Botswana said if investigations confirmed the contravention, subject to other intervening measures, the activities would be suspended forthwith.

“The Bank advises the public not to participate in the peddling of pyramid schemes, and for anyone involved in such schemes to cease and desist their operations. The public is further advised to report to the Bank any suspected illegal deposit-taking schemes or pyramid schemes for investigation,” it said.

In accordance with Section 3(4) of the Act, any person involved in illegal deposit-taking or operating a pyramid scheme contravenes the banking laws

“If anyone is found guilty, he is liable to a fine of US$2 50.00 for each day on which the offence occurs and to imprisonment for three years.

“Furthermore, in accordance with Section 5(6) of the Act, failure to comply with the bank’s order to cease and desist from such operations renders the owners/promoters liable to a fine of US$200 on each day on which the contravention occurs and to imprisonment for three years.”

-0-      PANA     MS/RA      27Aug2019