THE Bank of PNG has warned the people and businesses to avoid putting their money with promoters of schemes such as money scams which promise higher returns in a short period.
The bank became aware of agents involved in collecting cash from people to invest in operations or to establish financial institutions.
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| PNG Bank note. |
The bank regulates financial institutions to protect depositors’ money and interest and to maintain financial system stability.
“There are very strict and rigorous requirements under the Banks and Financial Institutions Act and Regulations for a licence to be awarded to an applicant to operate as a financial institution,” a statement said.
“Once licensed, the financial institution must continue to comply with strict regulations, standards and guidelines to maintain their licence.
“Applying for a licence to operate a bank or financial institution must be taken seriously and any investment in any promoter or agent purporting to incorporate and establish a bank or a licenced financial institution must be made with proper due diligence as to the legitimacy of that agent/entity and its ability to obtain a licence.
“If you are approached by any such agent or promoter, or have lost your money to these schemers, you should report them to police.
“The Bank of PNG is reminding the general public to use the services of licenced financial institutions which operate under the supervision of the bank to ensure that your money is safe.”
Statement