Money Circulating Schemes’ Members May Lose Their Investment To The State – DEC

Money Circulating Schemes’ Members May Lose Their Investment To The State – DEC

The Drug Enforcement Commission, (DEC) says all the money from money circulating schemes may be surrendered to the state to send a correct message to participants.
DEC Senior Investigations Officer under the Anti-money Laundering Unit, Mathias Kamanga says the law is clear that participating in such schemes is a crime in itself.
During a Syndicated Covid-19 Programme on Byta FM Monday morning, Kamanga said the commission will not be giving money to participants of a money circulating scheme.
“I think we in the past, we had a case with Heritage coin where people, atleast got a percentage of what they had invested and all those things because we had moved in. But I think for this time around, like I stated earlier, the law is very clear – participation in a money circulating scheme, is an offence by itself. And so, will do the investigations and take the matter to court and allow the court to be able to forfeit all the money to the state,” said Kamanga.
“Probably that will send the correct message to the public, so that all people can know that before you can be able to invest in anything, you should be able to find out, is this thing registered with the correct regulators. If it was to go under, what was going to happen? If these people were to run away like it was in the other cases that we have handled in Ikulile, Heritage coin. What is going to be able to happen at the end of it all,” he added.
Earlier, Kamanga stated that promising people over 2000 percent profits in a once-off investment is not village banking, but “money schemes that are meant to steal from the people of Zambia.
He says participants in a village banking group are like-minded people that take part in the entire activities of the association from its formation to the sharing of profits arising from its monthly savings.
Kamanga says members of village banking initiatives make monthly contributions and share profits according to their total earnings, contrary to expecting huge benefits from a single payment.
DEC is part of the investigating team that has seized bank accounts including property for Ono Savings Association and Comsave Credit Union on allegations of being involved in illegal money circulating schemes.
The two institutions have dismissed allegations of being involved in illegal activities and say members make their profits through savings and loan repayments with interest.