BoN fights pyramid schemes

THE Bank of Namibia (BoN) says it is still investigating the pyramid scheme called ‘Millionaires List that it warned the public about last week.

The bank identified it as a pyramid scheme and declared it illegal. Millionaires List promises participants huge returns within three months by depositing small amounts of money into unknown bank accounts.
The BoN says that according to the Banking Institutions Act of 1998 it has the power to close down a pyramid scheme ‘before any losses are incurred by the general public’.
‘Where these institutions or individuals are operating from established premises and are registered, the Bank of Namibia together with the Namibian Police can gain legal access to the premises and ensure that all records and money kept by such individuals or institutions are confiscated for the use as evidence in court,’ said BoN spokesperson Helene Badenhorst.
She said the Bank can also use these proceeds to repay affected people.
Badenhorst said, however, that the bank has not been able to establish where the Millionaires List is run from.
She said as a last resort, if the scheme persisted in sending out e-mail, the bank could freeze the account numbers given in the scheme and with the help of the Police track down the people involved.
The bank said in its statement last week that pyramid schemes are bound to fail eventually because they do not create value but simply operate on recruiting new members.