Warning Sounded Over Pyramid Schemes in NETHERLANDS ANTILLES Amid Economic Uncertainty
The Central Bank of Curaçao and St. Maarten (CBCS) has issued a stern warning against the rising threat of pyramid schemes in the Netherlands Antilles.
Rising Threat of Pyramid Schemes
The COVID-19 pandemic and resulting economic downturn have led some individuals to seek “legitimate” opportunities to make quick money. The CBCS has identified schemes like the “Blessings Circle” as currently operating within the jurisdictions of Curaçao and St. Maarten.
Economic Anxiety and Vulnerability
The economic anxiety arising from job losses and stagnating living standards has made potential recruits more receptive to such schemes. However, these pyramid schemes:
- Have no actual products or real investments
- Rely on the recruitment of new participants to keep money flowing in
- Collapse once the pool of new recruits runs dry
- Leave late entrants with empty pockets
CBCS Commitment to Protecting Consumers
Amid these challenging economic circumstances, the CBCS has reaffirmed its commitment to protecting consumers from harmful financial practices. The bank pledged to take:
- Preventive measures to educate the public about pyramid schemes and offer advice
- Repressive measures to curb suspected pyramid and fraudulent schemes
Seeking Assistance
If you encounter suspicious offers or believe you may have been a victim of a pyramid scheme, Curaçao and St. Maarten residents are encouraged to reach out to the Central Bank for assistance and advice.
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