{"id":40229,"date":"2023-02-27T16:54:48","date_gmt":"2023-02-27T16:54:48","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes"},"modified":"2023-02-27T17:08:54","modified_gmt":"2023-02-27T17:08:54","slug":"central-bank-to-tighten-noose-on-pyramid-schemes","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes","title":{"rendered":"Central bank to tighten noose on pyramid schemes"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>FINANCE minister Iipumbu Shiimi said the Bank of Namibia and the finance ministry are working on a banking institution bill that will<\/p>\n

include a provision that prohibits and criminalises pyramid schemes.<\/p>\n

In an interview with The Namibian yesterday, Shiimi said anyone who sets up a scheme that relies on people recruiting other people for rewards, falls under the category of an illegal scheme.<\/p>\n

A pyramid scheme is a franchise fraud or chain referral in which an individual is offered a distributorship or franchise to market a particular product. The real profit is earned, not by the sale of the product, but by the sale of new distributorships.<\/p>\n

\u201cYou are not selling any product or any service. You are practically collecting money from the people,\u201d he said.<\/p>\n

The minister said this is not an attempt to make saving schemes illegal as there might be saving schemes that are legal.<\/p>\n

\u201cAnything that looks like a pyramid scheme is likely to be covered by that new provision in the law,\u201d he said.<\/p>\n

Although there is a provision in the law that prevents people from participating in a pyramid scheme, that provision needs to be strengthened, he said.<\/p>\n

\u201cIt’s important to make it clear. Maybe the reason why people still continue with those illegal schemes is because they believe the law may not be clear. The intention is to strengthen the law and make it clearer,\u201d he said.<\/p>\n

Bank of Namibia (BoN) spokesperson Kazembire Zemburuka said the BoN raises red flags about these investment schemes to protect investors from illegal financial schemes.<\/p>\n

\u201cWe believe that once you worked hard for your money, you should be protected and your money should be safeguarded in the right institution,\u201d he said.<\/p>\n

If pyramid schemes have been allowed to operate, there would be a situation where money finds its way into these pyramid schemes and that will threaten the financial stability of the country, Zemburuka said.<\/p>\n

Many people have lost their money, through MyLife Change24, Striver’s Community, WhatsApp stokvel, Trongrace, Crowd1, and other schemes.<\/p>\n

The BoN has been running campaigns warning the public against participation in unlicensed financial schemes promising high returns, as well as those using digital media platforms for transactions.<\/p>\n

The BoN has also warned against financial schemes requiring members to recruit others or asking for joining fees.<\/p>\n

Speaking in parliament last week, Shiimi said the bill will also prevent criminal actors from holding shares in banking institutions.<\/p>\n

Iipumbu said this when responding to a parliamentary question posed to him by Landless People’s Movement (LPM) legislator Henny Seibeb last week.<\/p>\n

He said the bill will not only prevent criminal actors from holding shares in banking institutions but also meet the Financial Action Task Force prudential preventative regulatory requirements prescribed for market entry, to which countries must comply.<\/p>\n

The minister said the powers of the directors of the banks are strengthened to ensure that their independence of executives and governing boards are protected against undue interference by officials in other jurisdictions who purport to act on behalf of shareholding groups on any matter of strategic nature, including credit decisions that may impact the domestic economy.<\/p>\n

\u201cSuch interference and decision-making by people are not legally authorised by the domestic banking institutions’ laws and have no know-how about the domestic conditions that tend not only to undermine good corporate governance, but have negative implications on the economy,\u201d Shiimi said.<\/p>\n

The Namibian reported two weeks ago that BoN governor Johannes !Gawaxab allegedly wanted to add to his powers as governor of the central bank the right to block commercial banks from firing their executives.<\/p>\n

Shiimi said there are no plans or intentions to amend the law to protect non-performing banking executives at banking institutions in the country, or to interfere in the affairs of any banking institution.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. FINANCE minister Iipumbu Shiimi said the Bank of Namibia and the finance ministry are working on a banking institution bill that will include a provision that prohibits and criminalises pyramid schemes. In an interview with The Namibian yesterday, Shiimi said anyone who sets up a scheme that relies on people recruiting other […]<\/p>\n","protected":false},"author":84,"featured_media":40228,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,236,233],"class_list":["post-40229","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nCentral bank to tighten noose on pyramid schemes - Namibia<\/title>\n<meta name=\"description\" content=\"FINANCE minister Iipumbu Shiimi said the Bank of Namibia and the finance ministry are working on a banking institution b ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Central bank to tighten noose on pyramid schemes\" \/>\n<meta property=\"og:description\" content=\"FINANCE minister Iipumbu Shiimi said the Bank of Namibia and the finance ministry are working on a banking institution b ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-02-27T16:54:48+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-27T17:08:54+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1677504300.18.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"750\" \/>\n\t<meta property=\"og:image:height\" content=\"500\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Central bank to tighten noose on pyramid schemes\",\"datePublished\":\"2023-02-27T16:54:48+00:00\",\"dateModified\":\"2023-02-27T17:08:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\"},\"wordCount\":650,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2023\/02\/postQueueImg_1677504300.18.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/central-bank-to-tighten-noose-on-pyramid-schemes\",\"name\":\"Central bank to tighten noose on pyramid schemes - 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