Eight companies guilty of operating illegal pyramid schemes

The Central Bank has named eight organisations as running illegal pyramid schemes and requested the Attorney General to file action and punish these companies under the law.

The eight companies are Tiens Lanka Healthcare Pvt Ltd; Best Life International Pvt Ltd; Global Lifestyle Lanka Pvt Ltd; Mark-Wo International Pvt Ltd; VML International Pvt Ltd; Fast 3Cycle International Pvt Ltd; Sports Chain App, Sports Chain ZS Society Sri Lanka and OnmaxDT.

In statement the banking regulator said that any person who directly or indirectly initiate, offer, promote, advertise, conduct, finance, manage or direct, a prohibited type pyramid schemes in contravention to the provisions of Section 83C of the Banking Act No 30 of 1988 shall be a punishable offence and subject to a jail term not exceeding three years or a fine of Rs.1 million or both.

“Accordingly the public is informed to refrain from such activities which may be punished by law,” it said.

The Central Bank said there is no truth to reports that it has reached agreements with these institutions and noted that the Attorney General has been requested the Attorney General to institute legal action against these institutions.