28 Aug 2019

Bank of Botswana (BoB) says Botswana Fund Motshelo is illegally taking deposits from members of the public and operating a pyramid scheme business.

A press release from the bank informs the public that BoB has accordingly directed the promoters of Botswana Fund Motshelo to cease and desist from transacting the illegal business scheme.

The release further cautions that pyramid schemes and other illegal deposit-taking activities are unlawful in Botswana.

“These activities 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 license banks,” it states.

It further adds that it is a criminal offense punishable by law for any person to promote the aforementioned illegal activities in Botswana as that constitutes an 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 states.

“If the investigations confirm the contravention, subject to other intervening measures the activities shall be suspended forthwith,” it explains.

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.

In accordance with Section 3(4) of the Act, any person involved in illegal-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 offense 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 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