12 Jun 2019

Bank of Botswana has issued a warning to members of the public concerning some businesses conducting illegal deposit taking activities from members of the public through pyramid schemes.

According to a press release from Bank of Botswana, two such businesses identified by the bank are Global Dream Network and Dynamic Cycle Network.
The release states that pyramid schemes and other illegal deposit taking activities are unlawful in Botswana and that the nature of these operations constitute illegal deposit taking from the public, hence contravening Section 3(1) of the Banking Act (CAP. 46:04) (Act).

It says the provision of the Act restricts transacting banking business and/or advertising for or soliciting deposits of money solely to licensed banks.
Further it says it is also 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 release adds.
It indicates that if the investigations confirm the contravention, subject to other intervening measures, the activities shall 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 from doing so.
Through the same press release, the public is further advised to report to the Bank any suspected illegal deposit taking schemes or pyramid schemes for investigation.

In shows that 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 and, if found guilty, is liable to a fine of P2 500 for each day on which the offence occurs and to imprisonment for five 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 render the owners/promoters liable to a fine of P2 000 on each day on which the contravention occurs and to imprisonment for three years. Ends