The general public is hereby informed that it has come to the attention of the Bank of Botswana (Bank) that there are some entities that allegedly conducted illegal deposit-taking from members of the public without a license to do so, in contravention of the banking laws.
Illegal deposit-taking activities are unlawful in Botswana and contravene Section 3(1) of the Banking Act (Cap. 46:04) (Act). This provision of the Act restricts transacting banking business and/or advertising for or soliciting deposits of money solely to licensed banks. It is also a criminal offence, punishable by law, for any person to promote the aforementioned illegal activities in Botswana, as that constitutes advertising for or soliciting deposits of money. Section 5(1) of the Act empowers the Bank to investigate a person or entity suspected to be conducting unlicensed.
Banking business and/or illegal deposit-taking activities. If the investigations confirm the contravention, subject to other intervening measures, the activities shall be suspended forthwith.
Any entity or person involved in illegal deposit-taking contravenes the banking laws and, if found guilty, is liable to a fine of P2 500.00 for each day on which the offence occurs and to imprisonment for five years. Furthermore, failure to comply with the Bank’s order to cease and desist from operations, render the owners/providers liable to a fine of P2 000.00 on each day on which the contravention occurs and to imprisonment for three years.
