CBSL warns general public of pyramid-type schemes operating in Sri Lanka
May 31, 2023 11:59 am
The Central Bank of Sri Lanka (CBSL) says it has conducted investigations into several institutions to ascertain whether they have conducted schemes prohibited in terms of the Banking Act, based on some complaints received by the CBSL.
In relation to the examination conducted under Section 83C of the Banking Act. No 30 of 1988, the CBSL has determined that few entities have conducted prohibited schemes in contravention of the provisions of section 83C of the said Act.
The relevant entities are;
1. Tiens Lanka Health Care (Pvt) Ltd.
2. Best Life International (Pvt) Ltd.
3. Global Lifestyle Lanka (Pvt) Ltd.
4. Mark-Wo International (Pvt) Ltd.
5. VML International (Pvt) Ltd.
6. Fast 3Cycle International (Pvt) Ltd (F3C)
7. Sport Chain App, Sports Chain ZS Society Sri Lanka
8. OnmaxDT
Accordingly, the CBSL warned that any person who directly or indirectly initiate, offer, promote, advertise, conduct, finance, manage or direct, a prohibited type of pyramid scheme in contravention of the provisions of the Banking Act shall be a punishable offence such as imprisonment for a period not exceeding three years or a fine not exceeding one million rupees or both imprisonment and fine.
Furthermore, where the offence is committed willfully or knowingly, or with the knowledge that the act will cause damage or harm to any other person, the individual is liable to rigorous imprisonment for a term not less than three years and not more than five years and to a fine of Rs. 02 million or twice the aggregate amount in Sri Lanka currency revealed or divulged to have been received from the participants in the Scheme, whichever is higher, according to the CBSL.
Thus, the CBSL notifies the general public to refrain from such activities which may be punished by law, adding that the rumours that the Central Bank of Sri Lanka has reached some agreements with the institutions that are currently named as pyramid schemes based on the investigations conducted by the Central Bank of Sri Lanka, is not accurate.
The CBSL has also requested the Attorney General to consider instituting criminal proceedings in terms of the provisions of Section 83C of the Banking Act.
