Apex bank, BoZ, warns public against use of illegal financial service providers

Members of the public have been encouraged to only deal with licensed financial service providers when making investments.

The Bank of Zambia (BoZ) is concerned that countless citizens continued to lose their hard-earned money to such fraudulent financial schemes.

This is contained in a statement issued by the Assistant Director – Communications, Besnat Mwanza, on Friday.

“Members of the public are, therefore, encouraged to be on the look-out and report any suspicious financial institutions to law enforcement agencies.

“They are particularly encouraged to only deal with licensed financial service providers when making investments. This is the first step in safeguarding one’s money,” Mwanza said.

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Commercial Banks, Non-Bank Financial Institutions and Payment System Institutions are the institutions licensed by the BoZ.

Mwanza warned members of the public participating in fraudulent financial schemes that they risked being prosecuted, in addition to losing their money to these scams.

The Central bank also warned unlicensed institutions perpetrating these fraudulent financial services and products of prosecution once caught.

“The Bank reiterates that any person who conducts or participates in a money circulation scheme or issues a notice, circular, prospectus, proposal or other document inviting the public to subscribe to a money circulation scheme commits an offence.

“Promoting such schemes contravenes, among others, Section 157 of the Banking and Financial Services Act which states that, “a person who conducts or participates in a money circulation scheme commits an offence and shall be liable to prosecution,” Mwanza said.

She added that the Bank had observed, with concern, the continued participation of members of the public in fraudulent financial schemes.

Mwanza explained that the schemes typically promoted investment options that promised abnormally high returns.

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