{{Telexfree Rwanda Ltd has been banned in Rwanda with immediate effect after an investigation found that its operations were similar to those of a Pyramid scheme.
The Investigation was carried out by National Bank of Rwanda in collaboration with Ministry of Trade Industry which concluded that such pyramid scheme-like operations can facilitate money laundering and jeorpadise the financial sector.
In a statement released today;}}
The Ministry of Trade and Industry hereby informs the general public that the operations of P.L.I TELEXFREE RWANDA Ltd are banned.
The investigations revealed that;
• Telexfree’s activities are a pyramid scheme based, which rely on the emphasis of recruiting of participants to increase traffic on its website, and bonuses are awarded on the basis of the number of recruits and the recruiter’s level in the chain.
• The funds invested by promoters/members of Telexfree Rwanda Ltd were transferred to Germany on Telexfree e-wallet account. If such physical cash is transferred through a local account the e-wallet on the Telexfree’s software of the promoter is credited by electronic money but not backed physical cash in Rwanda.
• For a promoter to convert so called digital cash into physical cash he/she has to recruit another person who will pay him cash in her/his e-account and he/she too becomes new promoter which qualifies Telexfree as a pyramid scheme business operator.
• RURA has since 14/02/2014 instructed Telexfree Rwanda Ltd to cease all operations related to the provision of unauthorized telecommunication services
Considering the findings of the investigations, it is noted that, P.I.L Telexfree Rwanda Ltd is operating a pyramid scheme business by promising recruits high profits based on recruitment of other participants rather than gaining from any real investment or sale of goods and services, therefore, the Ministry of Trade and Industry hereby informs the General public of the following consequences emanating from engaging in pyramid schemes:
– P.L.I TELEXFREE RWANDA Ltd should cease to operating a pyramid scheme business in Rwanda with immediate effect;
– all people who will continue to invest their money into pyramid operations of P.L.I TELEXFREE RWANDA LTD shall not recover their money back;
– The money paid by the recruits to – P.L.I TELEXFREE RWANDA Ltd is transferred abroad and members have no legal means of claiming it.
Once again, the Ministry of Trade and Industry reminds the public of the following:
1. No company, cooperative, association or individual is authorized to operate money pyramid schemes on the territory of the Republic of Rwanda;
2. Companies, cooperative, associations or individual currently operating pyramid schemes are requested to immediately stop their activities, and report to the Government Agency registered them;
3. The general public is advised to stop investing in such prohibited businesses and to, instead, continues saving their money in dully licensed financial institutions or invest in other authorized businesses.
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