The Financial Sector Conduct Authority (FSCA) is warning people about doing business with African United Stokvel due to suspicions of unauthorised business activity and financial sector law breaches.
- The FSCA conducted search and seizure operations at African United Stokvel’s offices in Bryanston in June as part of ongoing investigations.
- The FSCA was prompted to investigate after receiving a whistleblower report about African United Stokvel’s activities.
- African United Stokvel claims to be running a digital stokvel that invests client funds in property and telecommunications.
- African United Stokvel claims it has applied for a financial services license but the FSCA refutes this claim.
- There are complaints from clients stating that although they were promised returns, they have not received them.
- The FSCA advises that providing investment products and financial services requires authorization from the FSCA.
- The FSCA said it will interview involved parties and may take further steps with law enforcement authorities once the evidence examination process concludes.