By Staff Writer
The Central Bank of Samoa warnings of illegal pyramid schemes that scams innocent people out of personal money are being publicly rejected by a few.
A CBS warning statement last Friday advised the public not to fall victim to a number of pyramid schemes that involves gifting and re-gifting of money.
The schemes also included recruitment of ‘investors’ to grow the contributions.
While the majority of public reactions through online media added support to the warnings a few criticised the CBS for interference.
The argument is that people should be allowed to invest as they wish.
Some protested that the scheme is practiced in other countries and making it illegal in Samoa denies the opportunity for people to take advantage of good earnings.
Others sounded desperate enough to accept the risks of a loss as better then stealing.
The huge majority who appeared well versed on how people are easily duped into the riches the schemes offer, overwhelmingly drowned out the few protest opinions.
All agreed with the CBS call for people to be vigilant and alert to these get rich quick schemes.
“ They may look like an attractive investment that earns quick money, especially in these difficult COVID-19 times, but the risk of loss of money invested is total,” the CBS statement cautioned.
The Financial Unit of the CBS is currently looking into the pyramid schemes alleged to be in operation.
Findings from the investigations will be referred to the Ministry of Police and other appropriate Ministries for investigation and subsequent legal charges to all criminally involved.
The CBS warning statement also reminded the public that Pyramid Schemes are prohibited under section 65 of the Competition and Consumer Act 2016 administered by the Ministry of Commerce Industry and Labour.
Section 65 of the 2016 Act makes it an offence:
1. For a person to promote and operate a scheme for the supply of Goods or
Services for reward if that scheme constitutes primarily an opportunity to buy or sell an investment opportunity as against an opportunity to buy or supply goods, and
2. Where that scheme is unfair to the participants because:
i. The financial rewards are dependent on the recruitment of additional
participants, and
ii. Where the number of additional participants in the scheme must be recruited to produce financial rewards to participants is not attainable to other participants.
In addition a person that carries out such activities may also be charged with section 172 of the Crimes Act 2013 for obtaining by Deception or causing a loss by Deception of any property (including money). Those convicted may face an imprisonment of not more than 7 years. These schemes are very dangerous and very risky to invest in with your money.
The CBS has sent notice to all Financial Institutions (Money Transfer Operators and Banks) to prohibit any suspicious transactions related to these so called gifting schemes.
“We would also like to thank these financial institutions for bringing these schemes to our attention.”