The Bank of Tanzania has dissociated itself from Leo Beneath London, which is under investigation for running a Ponzi scheme disguised as a movie promo service. Seventeen arrests were made, and concerns grow over digital fraud in microfinance lending. The BoT is drafting new regulations to enhance oversight and consumer protection in this sector.
The Bank of Tanzania (BoT) has distanced itself from the online fraud scandal involving Leo Beneath London (LBL), a company allegedly running a Ponzi scheme disguised as a movie promotion agency. Recent police operations led to the arrest of 17 individuals connected to LBL across major cities, where they solicited deposits for an online program promising earnings through viewing movie content.
LBL misled customers into believing they had contracts with film studios and promised rewards for participating and recruiting new members. Authorities suspect the scheme is a typical pyramid structure, having attracted hundreds of participants. The police continue to gather information on the extent of the operation and the amount of money involved.
This case has amplified pressure on the BoT to tackle fraudulent activities within the growing microfinance lending sector. On February 24, the bank issued a statement clarifying that it did not authorize LBL’s operations, contrary to circulating rumors. The BoT is pursuing legal actions against LBL’s officials for conducting unauthorized financial activities.
In light of this growing concern over online scams and fraudulent practices in the lending sector, the Bank of Tanzania is implementing new regulations to strengthen oversight and protect consumers. These regulations will address company operations, licensing requirements, and ensure that digital lending practices remain transparent and regulated. The bank’s efforts aim to eliminate fraudulent entities like LBL and restore public trust in microfinance services.
Original Source: www.zawya.com
