BY Dinitha Rathnayake
The Central Bank of Sri Lanka (CBSL), led by its Governor Ajith Nivard Cabraal, is to take continuous action to investigate prohibited financial schemes, including those which are increasingly taking place in the online sphere, whilst educating the public of the dangers in engaging and/or getting involved in such schemes.
When inquired regarding illegal pyramid schemes and steps that he would take to deal with such, he told The Morning that since the CBSL has observed a growing tendency of such prohibited schemes being promoted through the internet and social media, the CBSL will take certain steps to prevent the public from being induced into getting involved with such prohibited schemes.
The steps to be taken by the CBSL include carrying out campaigns on mainstream and social media to apprise the public about prohibited schemes with the warning to avoid such schemes. This would be done through web-based awareness programmes such as webinars and social media-based awareness programmes; electronic media-based programmes such as radio and television-based discussions, notices and scroller ads; YouTube-based programmes; electronic mail and WhatsApp groups-based publicity; and continuously responding to telephone/e-mail/Facebook inquiries and posts. The CBSL will shortly carry out an extensive mainstream press media campaign as well.
Accordingly, the conducting of investigations into pyramid schemes and referring the findings that suggest pyramid schemes to the Attorney General’s Department for prosecution, will also be encouraged.
Pyramid schemes have been made illegal in Sri Lanka in view of the potential danger they pose to the economy and any funds earned by promoting pyramid schemes are liable to seizure and forfeiture, in the event such funds are used for the offences of money laundering or for financing terrorism.
Many illegal pyramid schemes are fast spreading across Sri Lanka, even during the Covid-19 pandemic period.
Introducing the schemes as “life-changing, home-based, business opportunities”, the companies are conducting all the recruiting and meetings via Zoom. A pyramid scheme is defined by the CBSL as a scheme under which a person makes a payment to get the right to recruit others into the scheme for which he receives an income. The new recruits also make payments to get the right to further recruit others and in turn receive incomes for such recruitment.
Cabraal to get tough on pyramid schemes
28 Sep 2021
Cabraal to get tough on pyramid schemes
28 Sep 2021
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