Bank of Namibia clarifies statement about online FX trading

There was some confusion surrounding the statement of the Bank of Namibia recently, concerning accusations of them banning online foreign exchange trading. However, the bank clarified that they are not prohibiting online forex trading. It meant instead that the practice of collecting money from the public for investment in forex is unlawful.

Emma Haiyambo, BoN’s director of strategic communication, explained that the bank does not prohibit online forex trading. But members of the public who do so should utilize their own funds, instead of soliciting funds from other people to invest on their behalf under any pretense. Such action is contrary to the applicable laws.

There was a peaceful protest as a group of people demanded the release of their invested money. They willingly gave their cash for investment to forex traders Michael Amushelelo and Gregorie Beni Cloete. After the protest, Bank of Namibia issued a statement explaining its point of view.

This group, Project One Million Investors, as they call themselves, submitted a letter to the central bank. In the letter, they conveyed that most of them are struggling financially. In addition, they also claimed that they weren’t aware or part of any fraudulent behavior or money laundering activities for which Cloete and Amushelelo were charged. The group has given BoN 21 days to respond.

The police arrested Amushelelo and Cloete in October 2019 for allegedly receiving millions of dollars from the citizens through their financial schemes. Amushelelo and partner did so without authorization, in terms of the Banking Institution Act. 

Will the bank return the money to the investors?

Authorities seized all properties and vehicles, freezing all bank accounts belonging to the accused parties. The pair face four counts of infringement against the Prevention of Organised Crime Act 29 of 2004 and Banking Institution Act 2 of 1998.

Meanwhile, BoN declared that they have already met with the investors to inform them of the bank’s position. BoN can not release the money seized as the legal process binds them. But the bank is warning the public not to further promote or participate or invest in illegal financial schemes.