Bakani warns of multi-level marking schemes

VICTIMS of multi-level marketing should report such schemes to the police, Bank of PNG governor Loi Bakani (pictured) says.
Bakani told The National that no organisation was allowed to accumulate money on behalf of individuals without being licensed by the Central Bank.
“We have put up several notices to warn people about this multi-level marketing schemes,” Bakani said.
“They come in different forms but are pretty much pyramid-schemed.
“It is true that we don’t have legislation that covers it but the basic rule of banking is if you collect or mobilise money from people, you need to have some form of license or authority from the Central Bank.
He urged the public who have queries regarding such schemes to contact the bank.
“The basic fundamental of banking does not allow any person or entity to mobilise deposit or take deposits from people,” Bakani said.
“They have to be licensed by the Central Bank for security purposes.”
He said Bank of Papua New Guinea was aware on the recent increase in such schemes and urged people to report it to police.
“Again, they can come in many forms but they are basically pyramid schemes,” he said.
“We know that it has been increasing and it is very encouraging that people who were affected by that and became victims have gone to the police,.
“That is the way to go. Go to the police, report it and they will do their investigation.”