“MONEY DOUBLING” and “CARD LOADING SYSTEMS” is Illegal

The practice of “Money Doubling”, “Card Loading” and “Credit Card Loading Systems” by individuals and institutions is illegal, according to a communique issued by the Bank of Ghana on October 5, 2020.

The Bank of Ghana indicated in the statement that “these practices involve inviting members of the general public through traditional and social media outlets, to deposit money with “Money Doubling”, “Card Loading” and “Credit Card Loading Systems” through various payment service providers’ platforms or other channels, in return for attractive returns or opportunities”.

The Bank of Ghana’s statement asserted that this practice is equivalent to deposit-taking. Also, it said that it is the only institution that has the mandate to license an organization to take deposits and so it is illegal for any person or establishment to carry out such activities.

“The invitation to members of the general public to deposit monies with the “Money Doubling”, “Card Loading” and “Credit Card Loading Systems” amounts to deposit taking, under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). Under Section 4 of Act 930 only a body corporate, licensed by the Bank of Ghana may carry out deposit-taking business”.

Again, the Bank of Ghana said that persons or institutions who are found culpable for engaging in such illegitimate acts commit an offence thus will be obliged to refund the monies taken and sanctioned accordingly.

According to the Bank of Ghana, “in addition, such individuals and entities will be liable upon summary conviction, to the following punishment: (a) Body corporate; a fine of between 2500 to 5000 penalty units. (b) Director of a Body Corporate or other body of persons; a fine of between 1500 to 3000 penalty units or a term of imprisonment between two (2) to four (4) years. (c) An Individual; a fine of between 1500 to 3000 penalty units or a term of imprisonment between two (2) to four (4) years per section 22 of Act 930”.

The statement went on to warn persons and institutions engaged in such practices to discontinue immediately.

 “Such persons and entities offering “Money Doubling” and “Card Loading” or “Credit Card Loading Systems” services are cautioned to desist from doing so immediately”.

Also, the Bank of Ghana persuaded the general public to ensure that they confirm the licensing status of individuals and institutions who take deposits before doing business with them.

“The general public is encouraged to verify with the Bank of Ghana or other relevant authorities, the licensing status of persons [or] entities before depositing funds with them”.

 “Members of the public are reminded to place deposits only with institutions licensed by the Bank of Ghana, in order that they may be accorded the protection available under the banking laws”.

The Bank of Ghana further cautioned media outlets to prohibit the advertisement of such practices on their channels and to equally verify the authenticity of individuals or institutions before accepting to advertise them.

“The Bank of Ghana wishes to notify all media outlets including radio, television and online channels NOT to permit the advertisement of “Money Doubling” and “Card Loading” or “Credit Card Loading Systems” on their platforms. The media is encouraged to verify the licensing status of such entities with Bank of Ghana, before advertising their products and services”.

Finally, the general public was encouraged to adhere to the notice and follow accordingly.