The steps to be taken by the CBSL include carrying out campaigns on mainstream and social media to apprise the public about prohibited schemes with the warning to avoid such schemes. Accordingly, the conducting of investigations into pyramid schemes and referring the findings that suggest pyramid schemes to the Attorney General’s Department for prosecution, will also be encouraged. Pyramid schemes have been made illegal in Sri Lanka in view of the potential danger they pose to the economy and any funds earned by promoting pyramid schemes are liable to seizure and forfeiture, in the event such funds are used for the offences of money laundering or for financing terrorism. Many illegal pyramid schemes are fast spreading across Sri Lanka, even during the Covid-19 pandemic period. A pyramid scheme is defined by the CBSL as a scheme under which a person makes a payment to get the right to recruit others into the scheme for which he receives an income.

Source: The Nation September 28, 2021 17:48 UTC