BANK of Tanzania (BoT) has put into spotlight some unlicensed microfinance schemes doing money businesses illegally while misleading the public that they are public entities.
In a statement issued in Dar es Salaam yesterday, the BoT mentioned VICOBA Foundation as one of the scheme that fraudulently claim to issue quick loans to an individual only after making deposits online.
The scheme asks individuals wishing to become members to deposit online between 200,000/- and 500,000/- as registration fee that may qualify for loan ranging between 2m/- to 10m/- The central bank said further in the statement that initial investigations show that VICOBA Foundation is a briefcase scheme.
Also, to succeed in their illegal business, they have been using the names of the country’s top leaders including the President, Vice President and Prime Minister.
“The owner of the VICOBA Foundation scheme has been arrested and the police are still carrying investigation before taking further stern measures,” stated the statement.
Additionally, “BoT as financial sector regulator, including Village Community Bank (VICOBA) is warning the public not to use services offered by such pyramid schemes that may lead to loss of their money.”
The Bank is warning individual, group or institutions engaging in illegal money businesses without having licences that stern measures will be taken against them.
Section 12 of the Microfinance Act 2018 inter alia, mandates the Bank of Tanzania to licence, regulate and supervise microfinance business in Tanzania Mainland.
Section 16 of the Act prohibits any person from carrying out any microfinance business, unless such person is licenced by the Bank of Tanzania.
BoT said individuals, companies and groups that have been engaging in deposit or lending services before November last year are required to seek licences from the regulator before October 31, this year.
