Tonga’s sole financial regulator, the National Reserve Bank of Tonga (NRBT) has closed LWS Trading and RK3 Pacific Tonga Ltd and filed complaints against them with Police.
LWS Trading is based in Tonga and was operating in partnership with RK3 Pacific Tonga Ltd which described itself on Facebook as having offices in New Zealand and Australia. Their main business was facilitating the transfer of money to Tonga from overseas.
Many Tongans overseas use money transfer services to transfer funds mostly to their relatives in Tonga. This has been a regular practice for many years, as Tongans living overseas help their relatives in Tonga.
There are also fund raising activities from Tonga for building of church buildings, schools, and such projects which bring in money from overseas. It is estimated that over all close to $200 million pa’anga is being transferred annually to Tonga as remittances from Tongans living overseas.
Last week, it was published in news reports that customers of a local outfit LWS Trading have complained on delays of their funds being released yet have been sent from overseas. LWS Trading is a relatively newcomer to the money transfer business.
No complaints have been received from customers of more established money transfer outlets such as Western Union and MoneyGram.
Complainants alleged LWS office repeatedly told them their money has either yet to be received in Tonga or that a staff was sent to the bank to withdraw more cash while they were waiting.
The clients said they had to return home due to long waiting hours with no sign of the staff before they left.
Some complainants claimed it took weeks before they received their money while others alleged they were given differing excuses by the company.
However it was revealed that the companies have not been registered to coduct money transfer services, thus were operating illegally.
In a statement this morning, the National Reserve Bank of Tonga (NRBT) said it wishes to inform the public that LWS Trading and RK3 Pacific Tonga Ltd operating from Ma’ufanga, have to date, engaged in unauthorized foreign exchange services, in contravention of the Foreign Exchange Control Act 2018 (FEC Act).
“Providing money transfer services is classified as foreign exchange services, which are legally restricted to Authorized Persons holding a valid license issued by the Reserve Bank, as specified in section 13(1) of the FEC Act 2018”, it said.
It also said LWS Trading and RK3 Pacific Tonga Ltd operators have been directed to immediately cease all unauthorized activities and apply for the requisite license from the Reserve Bank.
“This matter has also been reported to the Ministry of Police to ensure swift compliance and to facilitate any necessary legal actions.
“For Customers Affected by LWS Trading Operations and RK3 Pacific Tonga Ltd Customers who have been affected by the activities of LWS Trading and RK3 Pacific Tonga Ltd are encouraged to
contact the Non-Banks Unit through telephone 24 057 or mobile 8701460.
“NRBT is committed to assisting affected customers in addressing their grievances and providing necessary support during this period. Please reach out to us for assistance and further information.
The Reserve Bank again reminds the members of the public to refrain from transacting with any unauthorized foreign exchange business”.
