The Drug Enforcement Commission (DEC) in collaboration with the Bank of Zambia has seized the accounts of Comsave Credit Union and ONO Savings and Credit Association for providing financial services without a license issued by the Central bank.
Responding to a Press Query sent by Money FM News, Commission Assistant Public Relations Officer Delight Haangala said the two institutions have contravened provisions of Section 6(2) of the Banking and Financial Services Act (BFSA), which prohibits a person from conducting, participating or inviting the public to participate in a money circulation scheme.
Ms. Haangala disclosed that the Commission is currently investigating potential Money Laundering offences predicated by the breach of the BFSA and other statutes of the Republic of Zambia.
She added that the investigations are in preliminary stages and the Commission will inform the nation in due course in respect of members of the public who may have been undertaking financial transactions with either Comsave or OSCA.
“Members of the public are hereby informed that the Drug Enforcement Commission in collaboration with the Bank of Zambia has seized the accounts of Comsave Credit Union (Comsave) and ONO Savings and Credit Association (OSCA) for contravention of Section 6(2) of the Banking and Financial Services Act No. 7 of 2017 (BFSA), which prohibits a person from providing financial services without a license issued by the BOZ and Section 157 of the BFSA which prohibits a person from conducting, participating or inviting the public to participate in a money circulation scheme,” Ms. Haangala disclosed.
Ms. Haangala warned members of the public to always be cautious when dealing with financial institutions owing to the increase in financial crimes as well as companies promising high returns on deposits.
“Further, the public is urged to only deal with financial service providers licensed by the Bank of Zambia, the Securities and Exchange Commission or the Pensions and Insurance Authority.”
Recently, government temporarily suspended the operations of two Mazabuka based village banking groups to pave the way for investigations into money laundering allegations.