The Central Bank of Sri Lanka emphasised that the law can be enforced under the Code of Criminal Procedure against those who encourage illegal pyramid schemes.
Accordingly, the perpetrators of such activity can be arrested without a warrant. Moreover, the law states that it is a non-bailable offence. The Central Bank of Sri Lanka highlighted that the pyramid schemes banned by the Central Bank of Sri Lanka (CBSL) use various tactics (changing the name and business name) to make them appear legitimate.
Commenting on that, the CBSL has stated that the smuggling pyramids are working to get investments based on four points to justify illegal schemes.The CBSL has received many complaints from the public about them.
Fraudsters who work to make these online schemes look legitimate claim that their businesses protect investors’ funds in accordance with the regulations of the CBSL. It also says that the relevant taxes are duly paid to the Government through the scheme. In order to get back the money of the participants in the scheme, they claim that they will have to pay an income bond to the CBSL from their personal money. If they do not do so, they say that their funds will be suspended by the Central Bank of Sri Lanka.
These racketeers deliberately claim that they are negotiating with the CBSL about these schemes misleading the public. However the CBSL strongly rejects claims that racketeers who run illegal schemes are in contact with the Central Bank. The public are informed that there is no truth in those statements.
A list of institutions licensed and regulated by the CBSL is given on the website of the Central Bank of Sri Lanka and the website of the Department of Foreign Exchange. Therefore, money should not be invested in other institutions except in such registered institutions with the CBSL. The CBSL further informs the public to be cautious and attentive about these schemes.
There is a high probability of losing one’s hard-earned money by linking to such proposals.The Central Bank further advises not to engage or invest in such schemes.