Financial Times

Anti-pyramid scam laws passed
By Duruthu Edirimuni
The Central Bank is getting ready to crack down on pyramid schemes now that amendments to the Banking Act, which incorporated anti-pyramid provisioning, have been passed in parliament and will become law once the Speaker certifies them.

Sarojini Kadurugamuwa, Director Legal, Central Bank told The Sunday Times FT that once the Speaker signs the document it will become legislation. "When it becomes law the Central Bank will have the power to investigate suspected pyramid schemes," she said.

A senior official in the Central Bank said the regulator is already drawing up plans to investigate reported pyramid schemes. Clause 37 of the Banking Act amendments stipulates that no person shall directly or indirectly engage in any form of a pyramid scheme.

A person violating this clause is liable to a three-year imprisonment or a one million-rupee fine, or both. When the offence is committed willfully, he or she is liable to a rigorous imprisonment of three to five years and a fine of two million rupees or twice the total amount to have been received from the participants of the scheme - whichever is higher.

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