FNB Lesotho Employees Helped SGK Pyramid Scheme Members Open Bank Accounts

• FNB Lesotho employees helped SGK pyramid scheme members open bank accounts on February 25, 2025.
• The Lesotho Financial Intelligence Unit investigation found that at least M8-million flowed through local bank accounts and was withdrawn overseas or converted into cryptocurrency.
• The incident raises concerns about FNB Lesotho's compliance with anti-money laundering regulations and highlights the risk of banks facilitating pyramid schemes.

On February 25, 2025, FNB Lesotho employees were present at an SGK office in Khubetsoane, where they helped prospective members open bank accounts.

On February 25, 2025, FNB Lesotho employees were present at an SGK office in Khubetsoane, where they helped prospective members open bank accounts. This was the same day that FNB Lesotho issued a 'scam alert' on social media about the SGK pyramid scheme, which has since collapsed. The scheme, which started around November 2025, promised guaranteed returns to investors who watched short video ads on an app. However, payouts abruptly stopped, leaving thousands of people out of pocket. An investigation by the Lesotho Financial Intelligence Unit found that at least M8-million (equivalent to R8-million) flowed through local bank accounts and was withdrawn overseas or converted into cryptocurrency in the Kingdom of Bahrain.

The involvement of FNB Lesotho employees in helping SGK pyramid scheme members open bank accounts raises concerns about the bank's compliance with anti-money laundering regulations. The Lesotho Financial Intelligence Unit investigation suggests that the bank may have inadvertently enabled illicit activities by facilitating account openings for scheme participants. This highlights the risk of banks facilitating pyramid schemes and potentially exposing themselves to regulatory scrutiny. The Central Bank of Lesotho issued a public warning against the SGK Investment Scheme on June 25, 2026, and the Financial Intelligence Unit published typology reports on the SGK scheme in May and June 2026 to alert financial institutions to emerging trends related to it. Compliance officers should review their institution's policies on off-site account openings to ensure they are not enabling similar activities.

The case of FNB Lesotho employees helping SGK pyramid scheme members open bank accounts has significant implications for the financial industry. It demonstrates how easily banks can be drawn into facilitating illicit activities, potentially exposing themselves to regulatory action and reputational damage. As such, it serves as a warning to compliance officers and legal professionals about the importance of robust policies and procedures in preventing such incidents from occurring.

Lawyers should be aware that this case highlights the risk of banks facilitating pyramid schemes and potentially exposing themselves to anti-money laundering regulations. Compliance officers should review their institution's policies on off-site account openings and ensure they are not inadvertently enabling illicit activities.

Source: Original reporting via GroundUp