Ahmed Mukhtar Naqshbandi
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has warned the public about falling prey to unauthorized lending apps, namely “MoneyBox” and “MoneyClub.”
The SECP has observed that the apps use the names of licensed Non-Banking Finance Companies (NBFCs) to gain public confidence in offering lending services without regulatory approval.
SECP has not granted permission to its licensed NBFCs, QistPay BNPL (Private) Limited and QistBazaar (Pvt) Limited, to launch the apps, namely “MoneyClub” and “MoneyBox,” respectively. This unauthorized activity causes a serious threat to the public, as these lending apps have been operating without regulatory approval.
SECP maintains a publicly available list licensed NBFCs
The SECP said that a publicly available list of licensed digital lending apps and NBFCs that have the SECP’s permission to offer lending services.
The public is encouraged to verify the status of any NBFC and its authorized app before transacting any business with a lending entity.
The SECP is acting to protect consumers and promote fairness and transparency in the financial services industry.
It notifies law enforcement agencies to take legal action against the operators of these apps. The SECP advises the public only to 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 [email protected].
