BoG discredits Onward Investment Limited as operating illegally.
The Bank of Ghana is warning the public against doing business with Onward Investment Limited, a company which takes deposits and engages in on-line foreign exchange trading. The central Bank says it has not licensed the company for any of these operations.
According to a statement from the bank, the company, which operated branches in Accra, Kumasi, Sunyani and Techiman, initially offered interest rates of 25% and raised to 35% as a special Christmas bonanza for a trading cycle of 42 days.
The Central bank is advising the public to desist from dealing with any such financial institution that offers interest rates equivalent to over 300 per cent per annum as the rates are not realistic and therefore not sustainable.
The statement says three officials of the company have been arrested and are undergoing investigations for unauthorized operations. This was after they failed to heed the central bank's directive to cease operations.
The statement added that it is collaborating with the Police to identify any assets of the company and the extent of the liabilities so as to determine the possibility of refunds to customers of the company from any recovered assets.
The Bank is also appealing to the investors in the scheme to exercise restraint while the law enforcement agencies pursue other officials of the company and the funds they have taken from the public.
The Bank of Ghana last year issued a similar communication about Capital Builders Network, CBNET which the case is still pending in court.