The Securities and Exchange Commission of Pakistan (SECP) on Monday warned the public against falling prey to unauthorized lending apps MoneyBox and MoneyClub.
The SECP saw that by utilizing the names of authorized Non-Banking Finance Companies (NBFCs) to offer loan services without any regulatory authorization, these applications were garnering the public’s trust.
“SECP has not granted any permission to its licensed NBFCs, QistBazaar (Pvt) Limited and QistPay BNPL (Private) Limited, to launch MoneyBox and MoneyClub,” said SECP spokesperson on Monday.
“This unauthorized activity poses serious threat to the public because these applications have been operating without regulatory approvals,” it added.
The SECP has a list of authorized NBFCs and online lending platforms that are allowed to provide lending services that is accessible to the public.
The statement continued, “The public is recommended to confirm the regulatory status of an NBFC and its authorized app before making transactions with a lending organization.”
“We are taking action to safeguard consumers and advance justice and openness in the financial services sector. In order to pursue legal action against the creators of these programs, we are alerting law enforcement agencies. The SECP recommends the general public to utilize approved apps provided by companies with operating permits in Pakistan.”
The SECP on Monday also asked the public to register complaints or evidence against the companies involved in unauthorized activities and illegal lending with the Commission.
Last month, SECP wrote to Google and Apple, urging them not to allow unlicensed digital lending applications on their respective app stores.
SECP Chairman Akif Saeed said that applications from non-banking service providers that are not registered or licensed should not be uploaded to the Google Play Store or the Apple Store.
In order to combat unlawful digital lending, the chairman further stated that SECP was working with mobile wallet and digital payment solution providers like Jazz Cash and Easypaisa.
