BoN declares Jamalife Helpers Global illegal

THE Bank of Namibia has given Jamalife Helpers Global a period of 21 days to cease their operations and repay all their clients in Namibia.

This was announced in a press release issued by the bank’s spokesperson, Kazembire Zemburuka today.

Kazembire said an investigation conducted by the bank shows that business activities carried out by the company contravene section 55A of the Banking Institutions Act.

The act states: “A person or banking institution may not conduct, permit or become involved in the conducting of, or the acceptance or obtaining of money, directly or indirectly from members of the public, as a regular feature of a business practice, with the prospect of any of such members receiving payments or other money related benefits directly or indirectly.”

According to the press release, the company’s primary revenue stream flows from recruiting members to participate in the referral system, rather than selling tangible goods or services.

It added that newly recruited members are required to pay an initial joining fee with the prospect of receiving commissions or incentives, and participants are required to recruit new members in order to earn an income or commission from the business.

“It is evident that the business cannot survive without new members paying a participation or joining fee,” it sated.

Furthermore, the spokesperson stated that the company’s business model is unsustainable and will result in members, especially those at the bottom of the scheme, losing their money.

Kazembire noted that it is not possible for Jamalife Helpers Global to deliver on promised rewards and operate successfully without the regular inflow of joining fees obtained from newly recruited members.

BoN has cautioned to members of the public to refrain from participating in any promotional activities carried out by the company and other schemes with similar operations.

Members in such activities are to be held criminally liable for violating the law, he said.

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