BoN warns against illegal investment schemes

WINDHOEK, 08 JUN  – The Bank of Namibia (BoN) has cautioned against illegal investment schemes which are becoming increasingly popular on social media and other online platforms.
A statement issued Thursday said the bank is investigating a number of investment schemes suspected to be operating in contravention of the Banking Institutions Act of 1998.
These schemes are taking deposits from the public without authorisation from BoN.
The statement said some of the key features of the schemes are that they promise members high returns within a very short period and rapid growth of membership is achieved through promotional messages via social media platforms.
They also do not sell any products and entice members of the public to invest and enjoy high returns.
“The public is hereby cautioned to refrain from operating or participating in such schemes, as they are not only illegal, but are also a risky financial undertaking,” it said.
The Bank of Namibia is empowered to take action against members of the public who participate in illegal financial schemes and those who operate or promote such businesses will be punished accordingly, the statement said.
(NAMPA)