The general public is hereby informed that it has come to the attention of the Bank of Botswana (Bank) that there are some persons or entities that continue to conduct illegal deposit-taking from members of the public. One such entity, a company by the name of Dafritech (Pty) Limited, purportedly facilitating trade in digital assets, solicits deposits of money from members of the public without a licence to do so. 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 activities in Botswana without a valid licence issued by the Bank. 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. The Bank of Botswana has accordingly instructed the director of Dafritech (Pty) Limited, Mr Michael M Segolodi, who operates from Plot 62450, Block 8, Gaborone, to cease and desist from transacting the illegal deposit taking activities. The public is further advised to report to the Bank any suspected illegal deposit-taking schemes for investigation. 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 such illegal operations, render the owners/promoters liable to a fine of P2 000.00 on each day on which the contravention occurs and to imprisonment for three years.
Source: Bank of Botswana