Central bank warns against participation in MyLife Change 247 scheme
The Bank of Namibia urged members of the public to refrain from participating in the promotion of activities of a financial scheme called MyLife Change 257 (MLC247) which promises customers high investment yields.
After conducting investigations into the scheme, the central bank found it was in violation of the Section 5 (1) (b) and 55A of the Banking Institutions Act (no.2) of 1998.
The central bank in a statement said that the scheme involves ‘peer-to-peer fund exchange’ whereby potential members of MLC247 are promised high returns within a short period of time by creating an ‘investment’ and benefiting from a donation of another member in order to reap the fruits of the ‘investment’.
BoN warned that the business model of MLC247 is not sustainable and may result in the loss of public funds.
“The bank would like to appeal to members of the public to refrain from participating in the promotion of activities of MLC247. Further, by transacting with or getting involved in the business practices of MLC247, such participating members of the public are committing an offence in terms of the Banking Institutions Act, (Act no.2 of 1998), as amended and if convicted, may be subjected to a fine or imprisonment as prescribed by the act,” Kazembire Zemburuka, Deputy Director of Corporate Communications at the bank said.
“The bank will continue to inform the members of public once there are any further developments in this matter,” Zemburuka added.