Times Of Swaziland: FSRA BUSTS BOGUS LIFE INSURANCE PROVIDER

FSRA BUSTS BOGUS LIFE INSURANCE PROVIDER
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Nhlanganiso Mkhonta on 01/08/2024 07:26:00


MBABANE – The Financial Services Regulatory Authority (FSRA) is making a
breakthrough in its efforts of curbing illegal service providers scamming
emaSwati their hard earned monies.
The authority has confirmed to have received a tip-off about an entity in
Siteki, that was operating unlawfully in the life insurance business and
collecting monthly premiums from members of the public.  FSRA Chief Executive
Officer (CEO) Ncamiso Ntshalintshali, confirmed to this publication that the
authority was notified of an unauthorised financial services provider, through
the authority’s whistleblowing platform.
Unlawfully
Ntshalinthsali stated that the entity was allegedly operating unlawfully in
Eswatini, in that, it collects monthly premiums from the destitute to low-income
earners in and around Siteki.
“It was further alleged that this insurance company does not pay out claims in
the event of the death of a member,” said the CEO. He said their initial
findings indicates that the entity has been collecting money in the form of
premiums from the public. He said at this stage, they could not confirm the
monetary value of the collected premiums. He said their investigations are still
ongoing. “We can also not state at this stage how long the entity had been
operating, pending finalisation of the ongoing investigation,” he said.
Safeguarding
The CEO shared that this successful raid underscores their commitment to
safeguarding the financial well-being of the public. He mentioned that they were
continuously enhancing their surveillance and enforcement capabilities to detect
and address illegal activities promptly. He warned that would-be perpetrators
should be aware that FSRA is vigilant and will take decisive action against any
unlawful operations. He said this raid sends a clear message that illegal
conduct within the non-bank financial services sector will not be tolerated, and
they will pursue all necessary measures to protect consumers and maintain the
integrity of the financial system as mandated by the FSRA Act of 2012, with the
objective of protecting consumers and also ensuring a sound and sustainable
non-bank financial sector.
Authority
Ntshalintshali stated that the authority is mandated by the provisions of
Section 63 of the FSRA Act of 2010, which reads as follows;
Where the authority has reasonable grounds to suspect that a person has
committed an offence under this Act or is about to do an act that, if done,
would be an offence under this Act, it may carry out such investigations as it
considers appropriate for the due administration of this Act.
He said, therefore, it was in exercising provisions of this section that the
authority undertook to conduct physical investigations.
He said fortunately, through the anonymous tip-off line, the FSRA had sufficient
information to warrant the random search.
He added that FSRA has an existing memorandum of understanding (MoU) entered
into with Royal Eswatini Police Service (REPS).
He mentioned that as such, based on the nature of this incident, the authority
requested assistance from the REPS, to accompany the Intervention and
Enforcement Division on an operation to carry out an onsite inspection and
crackdown on the entity operating in the life insurance business unlawfully, in
contravention of Section 35 of the FSRA Act and Section 3 of the Insurance Act,
2005.
Vigilant
The CEO encouraged all members of the public to remain vigilant and proactive in
reporting any suspicious or illicit activities within the non-bank financial
services sector.
He said members of the public are advised to report any suspicious acts that may
be illegal, through FSRA anonymous tip-off line, which was launched with the
objective of providing a safe space to report such conduct without putting the
source at risk. He said information from this line is very safe in that, it is
managed by an external body, which allows for complete objectivity.