Microsavers is reported to be engaging in a money circulation scheme without following procedure, according to a statement issued today by the Bank of Zambia’s Communications Unit.
Information obtained by the Bank of Zambia indicates that “Microsavers Hub” is collecting financial deposits from members of the public.
The statement indicates that the money circulation scheme being undertaken by “Microsavers Hub” is not allowed under section 157 of the banking and financial services Act number 7 of 2017.
“In view of the above authorities have moved in to assess compliance of the activities of the company with banking and financial services as well as the prohibition and prevention of money laundering act respectively. Money circulation scheme is an unsustainable investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation,” BoZ stated..
“The Central Bank has therefore warned members of the public to desist from getting involved in such illicit activities and are urged to be cautious with an investment that promises huge returns without underlying economic activity…”
The Bank of Zambia stated that money circulation schemes were in various forms “but all promises high returns to individuals who are recruited by depositing money into an account after which they are issued with a purported investment document”.
“Members of the public must only deal with financial service providers licensed by the Bank of Zambia, the Securities and Exchange Commission or the Pensions and Insurance Authority,” stated BoZ.