12 October 2024 04:17 am Views - 1507
By Nuzla Rizkiya
The Central Bank of Sri Lanka (CBSL) has cracked down on a total of 19 entities found to have been operating and promoting fraudulent pyramid schemes in the country.
The CBSL yesterday listed Smart Win Entrepreneur (Pvt.) Ltd as the latest company involved in illegal schemes, bringing the total number of pyramid activity promoters to 11 entities this year.
Among the listed entities were The Enrich Life (Pvt.) Ltd, Windex Trading (Pvt.) Ltd, Beecoin App/Sunbird Foundation, Fast Win Ltd, Fruugo Online Ltd, Genesis Business School/Era Miracle Ltd, Isimaga International Ltd, Ledger Block, Qnet/Questnet and Ride to Three Freedom Ltd.
All these companies were found to be involved in fraudulent finance schemes to mislead the public. They urge people to invest money in illegitimate business models in exchange for unrealistic high returns.
In August last year, the CBSL banned eight other entities for conducting similar illegal activities.
Among the listed companies were Onmax DT, MTFE App, MTFE SL Group, MTFE Success Lanka Ltd, MTFE DSCC Group Ltd, Tiens Lanka Health Care Ltd, Best Life International Ltd, Global Lifestyle Lanka Ltd, Mark-Wo International Ltd, VML International Ltd, Fast 3Cycle International Ltd (F3C) and Sport Chain App/Sports Chain ZS Society.
Under Banking Act No. 30 of 1988 of Sri Lanka, promoting or participating in pyramid schemes, whether knowingly or unknowingly, is illegal and a punishable offense.
For offenses committed knowingly, the penalty includes rigorous imprisonment for a term of not less than three years along with a fine of Rs.2,000,000 or twice the total amount received from participants in the scheme (the higher amount).
Additionally, any person found guilty of merely participating in these schemes may face imprisonment for a term not exceeding three years, a fine not exceeding Rs.1,000,000 or both imprisonment and a fine.