The Central Bank of Lesotho (CBL) has warned the public against investing in fraudulent investment schemes and unlicensed financial institutions after detecting a growing number of entities falsely claiming to be authorised by it.
The CBL said some operators are enticing members of the public with promises of unusually high returns while falsely claiming to hold licences issued by the bank.
It warned that such schemes are designed to persuade people to deposit money before defrauding them, urging Basotho to avoid dealing with any financial institution that cannot produce a valid CBL licence.
The central bank specifically cautioned the public against investing in SGK Investment Scheme, also known as SGK Platform or SGK Elite, Prestige Wealth Investments, Lengau People Society and Prime Aura Platform, stressing that they should not be regarded as CBL-licensed entities.
In a press release issued on Thursday, the bank advised prospective investors to request proof of a valid licence and verify it directly with the CBL through its official website before committing any funds. Verifying the licensing status of financial institutions remains one of the most effective ways to protect the public from investment fraud, it advised.
