The warning has been issued today in a statement released by BNR. “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).These scams take the form of active pyramid schemes, multiple level marketing or cryptocurrency issuance through fake initial coin offering (cryptoscam),” reads the statement in part.
Some of these schemes that have come to the attention of BNR include Supermakertings Global Ltd, 3 Friends System Group Ltd , Onecoin or Kwakoo among others.
These scams require a client (recruit) to pay a fixed amount of money to the scheme promoters as membership fee or initial investment and promise to pay a certain amount of money for the recruitment of new participants into the scheme, plus high interest in the invested amount.
These schemes may be either product/service based where there is a mandatory purchase of goods (such as medicines), services (travel packages) or intangible property (such as digital coins) operated through multilevel or network marketing.
The schemes could however be based on payment of a mandatory minimum entry fee with no product or service consumption required (naked pyramid schemes). The common factor with those schemes is the promise to make the participant rich in a short period and with minimum effort.
“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,” reads BNR statement.
BNR also advised the public to exercise caution and ensure that their investments are with credible and duly licensed deposit-taking financial institutions, assets managers as well as securities brokers.
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