The Bank of Ghana (BoG) has warned the public against dealing with Onward Investment Limited, a non-licenced deposit-taker.

According to BoG, in December 2011 its attention was drawn to the operations of Onward Investment Limited, a company that took deposits from the public and ostensibly engaged in on-line foreign-exchange trading

In an issued statement, the bank said it is collaborating with the police to identify any assets of the company and the extent of its liabilities so as to determine the possibility of refunds to customers from any recovered assets.

The statement said some officials of the company have been arrested, but the rest are on the run. Onward Investment Limited had earlier ignored BoG’s directive to desist from its illegal activities and refund all deposits taken. It operated branches in Accra, Kumasi, Sunyani and Techiman.

The company promised interest rates of 25% for a trading cycle of 42 days in December 2011. It raised the interest rate to 35% as a special Christmas bonanza -- but the Central Bank said such rates, equivalent to over 300 percent per annum, are unrealistic and therefore not sustainable.

BoG advised that the public should desist from dealing with unauthorised financial institutions, especially those that offer very high interest rates on deposits.

It appealed to investors in the scheme to exercise restraint while the law-enforcement agencies pursue other officials of the company and the funds they have taken from the public.