ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Monday warned the general public against illegal non-banking financial companies (NBFCs).
The SECP warned the public about falling prey to unauthorized lending apps, namely “MoneyBox” and “MoneyClub.”
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The regulator observed that the apps are using the names of licensed companies to gain public confidence in offering lending services without any regulatory approval.
SECP said it had not granted any permission to its licensed NBFCs, QistBazaar (Pvt) Limited and QistPay BNPL (Private) Limited, to launch the apps namely “MoneyBox” and “MoneyClub,” respectively. This unauthorized activity poses a serious threat to the public, as these apps have been operating without regulatory approval.
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The SECP maintains a publicly available list of licensed NBFCs and digital lending apps that have the SECP’s permission to offer lending services.
The public is encouraged to verify the regulatory status of any NBFC and its authorized app before transacting any business with a lending entity.
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The SECP is acting to protect consumers and promote fairness and transparency in the financial services industry. It is notifying law enforcement agencies to take legal action against the operators of these apps. The SECP advises the public to only use authorized apps offered by entities licensed to operate in Pakistan.
Complaints or evidence against companies involved in unauthorized activities and illegal lending can be sent to complainats@secp.gov.pk.
