(ZANIS ) The Bank of Zambia says preliminary investigations into Comsave Credit Union and ONO Savings and Credit Association have revealed that the two institutions were collecting and lending money from members of the public as independent administrators under the disguise of Village Banking.
In the joint statement to ZANIS by BOZ and DEC communications units, it has also been noted that the activities had a semblance of Money Circulation Schemes which are prohibited under the Banking and Financial Services Act.
In consultation with BOZ, The DEC-Anti Money Laundering Investigations Unit, has, exercised its authority under the law to safeguard the interests of the public.
The statement indicated that members of the public who may have been undertaking financial transactions with either Comsave or OSCA, will be advised to submit documentary evidence of their respective deposits in the accounts of the two entities.
The Central Bank urged members of the public to know and understand who they are dealing with before engaging in any business or financial transaction.
And the Drug Enforcement Commission appealed to members of the public to remain calm as investigations are still ongoing.
Village Banking is a closed group of self-selected individuals, with clearly defined rules and procedures for saving and borrowing money within the group, as well as sharing the interest earned.