|
The Malta Financial Services Authority (MFSA) yesterday warned of persons illicitly offering financial services in Malta under the pretext of easy money and low interest loans.
No person may offer to provide financial services of any type unless that person is duly authorised by the Authority.
Last year (in July 2004), the MFSA issued a public warning about dubious financial arrangements being offered by a foreign national resident in Malta. However, it has now transpired that this activity has resumed and a number of Maltese persons have been lured by the prospect of supposedly low interest and hassle-free financial arrangements.
The MFSA said that it was aware that Maltese businessmen (and other persons) have been offered the opportunity to enjoy loans of large sums purportedly with foreign banks. Some Maltese individuals are also helping this foreign national to make contact with potential borrowers. The potential borrowers are sometimes asked to make down payments running into thousands of liri on account of various administration costs and for other reasons related to this proposed arrangement.
The MFSA said it was aware that the Police are currently prosecuting a person involved in offering loan arrangements of this nature which have occasioned substantial financial loss to Maltese borrowers. In these cases, the promised loan did not materialise, and the down payments were not refunded.
“The public is once again being urged to exercise caution when presented with schemes that offer easy access to money, and to immediately seek advice from licensed financial intermediaries or other qualified persons conversant with financial services law and practice before signing any documents or entering into any other commitment,” the MFSA statement said.
A list of licensed entities can be viewed on the MFSA website at www.mfsa.com.mt. The public can also verify whether a person or an institution is authorised by calling MFSA on freephone 80074924 or by requesting a list of licensed institutions to be sent to them by post.
|
