There are strict rules and controls that govern investments with these institutions, whereas unregulated and unsupervised persons and groups do not follow these rules, placing the public at great risk of losing their money.
The Banks Act prescribes that only registered banks can take deposits from the general public, and it is an offence for unregistered persons to conduct the business of a bank. As part of its mandate, the PA is empowered to investigate the activities of unregistered persons suspected of taking deposits from the public and to control the activities of unregistered persons.
The PA is not a prosecuting authority and can only report suspicions of other illegal activity to the South African Police Service and National Prosecuting Authority for criminal investigation and prosecution.
The PA relies on members of the public to inform it of suspected illegal deposit-taking activities. It should be noted that the PA can only react to complaints received from the general public that contain sufficient details and documentary evidence to justify the PA invoking its powers in terms of the Banks Act.
To access illegal deposit taking reporting form click here.
If you have further questions about illegal deposit taking, please do not hesitate to