By Watch Reporter

The Drug Enforcement Commission, (DEC) has taken over accounts for COMSAVE Credit Union as well as ONO Savings and Credit Association, (OSCA) for violating the Banking and Financial Services Act.

DEC Assistant Public Relations Manager, Delight Hangala says the act prohibits anyone from conducting, parparticipating or inviting the public to participate in a money circulation scheme.

In a statement, Hangala also reveals that the commission is currently investigating potential Money laundering offences by the two institutions.

“Members of the public are hereby informed that the Drug Enforcement Commission in collaboration with the Bank of Zambia has seized the accounts of Comsave Credit Union (Comsave) and ONO Savings and Credit Association (OSCA) for contravention of Section 6(2) of the Banking and Financial Services Act No. 7 of 2017 (BFSA), which prohibits a person from providing financial services without a licence issued by the BOZ and Section 157 of the BFSA which prohibits a person from conducting, participating or inviting the public to participate in a money circulation scheme,” read the statement in part.

She says the investigations are in preliminary stages and the commission will later issue a full statement with regards members who may have been undertaking transactions with Comsave and Ono.

“The Commission is currently investigating potential Money Laundering offences predicated by the breach of the BFSA and other statutes of the Republic of Zambia. The investigations are in preliminary stages and the Commission will issue a statement in due course in respect of members of the public who may have been undertaking financial transactions with either Comsave or OSCA,” she added.

Hangala has since warned the public to always be careful when dealing with financial institutions owing to the increase in financial crimes and companies promising high returns on deposits.

She adds that the public should only deal with financial service providers licensed by the Bank of Zambia, the Securities and Exchange Commission or the Pensions and Insurance Authority.

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