Accra, Ghana. May 10, 2017 – The Bank of Ghana has warned the general public about the activities of a company called MMM Ghana, which is believed to be operating a Ponzi scheme through a virtual office.
The company, which claims to have over 10,000 clients, moves from place to place and mobilises deposits from the general public, according to a statement issued today by Bernard Otabil, Director of Communications of the BoG.
“The institution’s operations are contrary to section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and also threatens the safety and soundness of the financial system”, it stressed.
” The Bank of Ghana wishes to inform the general public that MMM Ghana is NOT LICENSED by the Bank of Ghana to engage in any form of deposit-taking activity, hence anyone who does business with MMM Ghana does so at his or her own risk”, the statement stated.
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This is similar to a pyramid scheme in that both are based on using new investors’ funds to pay the earlier backers. For both Ponzi schemes and pyramid schemes, eventually there is not enough money to go around, and the schemes unravel.
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