Ghana’s Central Bank; the Bank of Ghana (BoG) has cautioned members of the public against the activities of a company suspected to be operating a Ponzi Scheme in the country. The Company- MMM Ghana, is currently believed to be operating the scheme through a virtual office in Accra and its surrounding regions.
The company, which has smartly dressed officers visiting individuals in their homes, shops and offices to mobilize deposits claims to have over 10,000 clients currently on its database.
A statement signed by the Director of Communications at the BoG, Bernard Otabil, and released yesterday noted that the operations of MMM Ghana contravenes Act 930.
“The institution’s operations are contrary to section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and also threatens the safety and soundness of the financial system,” it noted.
“The Bank of Ghana wishes to inform the general public that MMM Ghana is NOT LICENSED by the Bank of Ghana to engage in any form of deposit-taking activity, hence anyone who does business with MMM Ghana does so at his or her own risk,” the statement further noted.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there is not enough money to go around, and the schemes unravel.
Source: Jeorge Wilson Kingson || ghananewsonline.com.gh