Title: Central Bank of Swaziland Halts QZ Asset Management Operations over Alleged Pyramid Scheme
Date: 2023-05-13
By: Sabelo Ndzinisa
Central Bank Obtains Interim Order to Suspend QZ Asset Management
In an effort to protect the public from potential financial abuses, the Central Bank of Swaziland (CBE) obtained an interim order from the High Court to suspend the operations of QZ Asset Management. This action was taken due to allegations that the company was operating a pyramid scheme in violation of Swaziland’s financial regulations.
- Central Bank files urgent application
- High Court grants relief to Central Bank
Respondents and Financial Institutions Listed in the Application
The following individuals and banking institutions were listed as respondents in the application:
- Cebile Mkhonto
- Vusi Malubane
- Nthabiseng Magongo
- Lungile Dlamini
- Khetsiwe Shabangu
- Sibongile Mndzebele
- Sabelo Dlamini
- Dulcy Mhlanga
- Ndumiso Nyandzeni
- First National Bank
- StandardBank
- Eswatini Bank
- Nedbank
Central Bank’s Allegations against QZ Asset Management
The Central Bank’s application accused QZ Asset Management and the respondents of engaging in unlawful deposit-taking activities:
- Acknowledgment of ex-parte proceedings
- Possible prejudice if respondents are informed
- Illegally operating as a financial institution
Urgent Need for Injunction due to Prejudice
The Central Bank argued that:
- Funds would be moved to offshore accounts if respondents are informed
- Prejudice would result in serious harm to Central Bank and public
Central Bank’s Discoveries during Investigation
During the investigation, the Central Bank uncovered:
- Promise of high returns (up to 400%)
- Deposited funds sent to unknown overseas destinations
- Deposits made through an application
Additional Findings and Consequences of the Order
Additional findings indicated that:
- Company primarily operated from China and other countries
- Violation of Financial Institutions Act and Financial Services Regulatory Authority Act
- Unlicensed company, making activities illegal
Consequences of Non-Compliance with the Order
QZ Asset Management is required to:
- Cease and desist from carrying on banking, deposit-taking, and related activities in Swaziland
- Comply with the order to avoid criminal conviction, fines, and administrative penalties
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