By Scoop Reporter
THE Drug Enforcement Commission (DEC) in collaboration with the Bank of Zambia (BoZ) has seized the accounts of Comsave Credit Union 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).
The Act prohibits a person from providing financial services without a licence issued by the BOZ and Section 157 of the BFSA prohibits a person from conducting, participating or inviting the public to participate in a money circulation scheme.
DEC assistant Public Relations Officer Delight Haangala has confirmed the development today saying the Commission is currently investigating potential money laundering offences predicated by the breach of the BFSA and other statutes of the Republic of Zambia.
Mr. Haangala says investigations are in preliminary stages and the Commission will issue a statement in due course in respect of members of the public who may have been undertaking financial transactions with either Comsave or OSCA.
“The Commission, therefore, wishes to warn 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,” Ms. Haangala said.
Two days ago, a combined team of DEC and Zambia Police officers sealed off offices of ONO Initiatives and Comsave in Mazabuka following reports that the two village bank associations are involved in money laundering activities.