RBM cautions on investment schemes
The Reserve Bank of Malawi (RBM) has warned the public against falling prey to unlicensed financial or investment schemes that have so far ripped off many people.
RBM, which is the registrar of financial institutions, has since advised the investing public to demand evidence of registration with the central bank before dealing with suspicious institutions.
The central bank warning comes in the wake of a growing number of individuals and organisations operating unlicensed financial institutions.
In a published statement last week, RBM Governor Charles Chuka said the bank has noted that there are institutions inviting unsuspecting members of the public to join their schemes by paying an initial non-refundable entry fee.
According to Chuka, paid-up members are allowed to deposit investment funds with the schemes where the initial investor is then encouraged to recruit more people to accrue increased benefits.
He said: “The bank wishes to inform and warn the public not to deal with unregistered financial service providers such as Pyramid and Ponzi schemes. The general public is further warned that any person doing financial business with unlicensed or unregistered financial institutions does so at their own risk.”
In a written response to a questionnaire on Saturday, RBM spokesperson Mbane Ngwira said the bank is yet to establish the identities and amount of money swindled to date.
The central bank has since cautioned individuals and organisations carrying out such business operations are advised to stop their operations immediately, saying it will take appropriate action against anyone found carrying out such business operations in Malawi.
From time to time, the central bank issues a list of registered financial institutions in the country.
As per the bank’s recommendations, all registered or licensed entities are required to prominently display the certificate of registration or license on their premises.
RBM has also advised the public to report to the registrar of financial institutions by telephone or in writing if they happen to have transacted business with any entity that is suspicious or is not licensed and registered.
