Title: Central Bank of Eswatini Warns Public Against Pyramid and Ponzi Schemes as Cases Surge

Central Bank’s Warning to EmaSwati

The Central Bank of Eswatini issues a stern warning to emaSwati regarding the rising number of Pyramid and Ponzi schemes, urging consumers to exercise caution before investing their savings and pensions.

Understanding Pyramid and Ponzi Schemes

• Pyramid schemes, also known as multi-level marketing schemes, rely on the recruitment of new members to generate revenue.
• Ponzi schemes share similarities but do not involve the sale of any product or service.

Risks and Consequences

The increasing prevalence of these schemes poses a significant risk to consumers and financial stability, and tarnishes the reputation of legitimate financial institutions. Moreover, they facilitate money laundering.

Protecting Consumers

The Central Bank and Financial Services Regulatory Authority (FSRA) in Eswatini require licenses from financial services providers (FSPs) to ensure their legitimacy.

Red Flags

Consumers should be wary of investment opportunities that exhibit the following warning signs:

1. Promises of extremely high returns in a short time
2. Unverifiable claims of new technology, products, or special investment schemes
3. Overemphasis on recruitment versus the sale of products or services
4. Statements claiming the scheme is licensed in another jurisdiction
5. Pressure to make quick decisions without consultation
6. Use of technical jargon or complicated business models
7. Defensive or unusual explanations of business activities
8. Rapid accumulation of wealth by promoters

Protecting Yourself

To avoid falling victim to these schemes, consumers should approach unsolicited investment offers with skepticism, conduct thorough research, and comprehend the company and its products fully. Diversification of assets and investments is also advisable, along with avoiding schemes that delay fulfilling commitments and those that pressure members to maintain confidentiality.

Reporting Suspicious Activities

If you suspect illegal investment program or scheme activities, report them to:

1. The Central Bank at Tel: 2408 2000 or e-mail info@centralbank.org.sz
2. The FSRA at Tel: 2406 8000 or email info@fsra.co.sz
3. Royal Eswatini Police Services at 999 or 9999

All information reported will be kept confidential and addressed with urgency. Let us work together to protect the financial wellbeing of emaSwati.