Financial Crime World

Bhutanese Continue to Fall Prey to Fraudulent Ponzi Scheme, ‘Tallwin Life Plan’ - Royal Monetary Authority Warns Public

Introduction

The Royal Monetary Authority (RMA) of Bhutan has issued a stern warning to the public against participating in the illegal Ponzi scheme known as ‘Tallwin Life Plan.’ Despite prior public notifications on October 27, 2022, Bhutanese citizens have continued to invest in the fraudulent financial scheme.

Characteristics of the Scheme

‘Tallwin Life Plan’ is an unlicensed investment scheme where earlier investors receive returns from the contributions of later investors instead of genuine profits. The scheme’s survival depends on the constant flow of new investors, and it collapses when it is unable to recruit new members or when a significant number of existing investors request their investments back.

Under Bhutanese financial regulations, financial services may not be offered without first obtaining the appropriate license, as stipulated in Section 11 of the Financial Service Act (FSA) 2011. Non-compliance is punishable under Section 15 of the FSA, carrying a minimum wage fine for the duration between fifteen to thirty years.

Public Warning

RMA urges the public to steer clear of ‘Tallwin Life Plan’ and refrain from investing in such unlicensed financial schemes that may result in hefty fines or lengthy prison sentences. Bhutanese citizens are advised to investigate potential investment opportunities thoroughly and consult financial advisors before making any financial commitments to avoid falling prey to such scams.

Recommendations

  • Be cautious of unsolicited investment offers, especially those that promise unusually high returns.
  • Always research the company and its license status with regulatory authorities.
  • Verify the authenticity of investment products and services before investing.
  • Consult financial advisors or seek professional advice before making any financial decisions.

By being aware of these red flags and taking proactive steps to protect themselves, Bhutanese citizens can avoid falling victim to fraudulent schemes like ‘Tallwin Life Plan’ and maintain a secure financial future.