The Central Bank of Sri Lanka (CBSL) has received repeated complaints against OnmaxDT, Sri Lanka Mirror learns.
Colombo Chief Magistrate Prasanna Alwis recently ordered an American company which had invested in OnmaxDT accused of earning USD 100 million through illegal pyramid schemes, to freeze eight of its accounts.
The CBSL conducted an investigation regarding this institution and three others and complained to the Criminal Investigation Department (CID) that the directors, promoters and founders of the institution had committed a punishable offence under Section 83 A (1) of the Banking Act.
Meanwhile, the CBSL said that it has received between 20 and 30 complaints regarding pyramid schemes in the past four months.
The Central Bank said that investing money in pyramid schemes is a punishable offence under the Banking Act No. 30 of 1988.
Such acts are punishable offences under the Penal Code and the Prevention of Money Laundering Act as well.
Those involved in this scam can also be charged with concealment of true information under the Financial Transactions Reporting Act.
The Central Bank also said that those involved in pyramid schemes are also guilty of a number of other offences including non-payment of debts, theft, forgery and check fraud.
Meanwhile, the Central Bank pointed out that the fact that people who are engaged in these pyramid schemes are at large is a reason for the spread of this crime.
