The National Bank of Rwanda is warning the public against pyramid schemes and network marketing in the country, saying it will not safeguard any person who invests in such schemes or any other related activities.
The National Bank of Rwanda has been alerted of the existence of investment scam activities operating in Rwanda through locally registered businesses or from abroad through online platforms, according to a notice issued to the general public on Thursday.
The scams, according to the bank take the form of active pyramid schemes, pyramid scheme, multiple level marketing or crypto currency issuance through fake initial coin offerings.
Supermarketings Global Ltd, 3 Friends System (3FS) Group Ltd, Onecoin or Kwakoo (OnyxCoin) among others were cited among the examples of such schemes which have come to the bank’s attention.
According to the central bank, the scams require a client to pay a fixed amount of money to the scheme promoters as a membership fee or initial investment with promise to pay a certain amount of money for recruitment of new participants into the scheme and interest on the invested amount.
“Having noted the dangers of the above mentioned scams, the National Bank of Rwanda reminds the general public that these are illegal in Rwanda and investors in such schemes are highly likely to lose their money,” the public notice reads in part.
It noted that the common factor with these schemes is the promise to make the participant rich in a short time and with minimum effort.
“The public is advised to ensure caution and ensure that their investments are with credible and duly registered deposit taking financial institutions, asset managers as well as security brokers,” the central bank said.