The Central Bank of Lesotho officially outlawed TVI Express, classifying it an illegal pyramid scheme operating within the country. The bank's decision, announced recently, follows an assessment against Lesotho's Financial Institutions Act. It found TVI Express in violation of national law.
The bank determined TVI Express operations heavily emphasized participant recruitment. It offered lucrative incentives, calculated primarily by the number of new recruits. These incentives served as bait, drawing in participants with promises of easy money through further recruitment.
Sales of purported products or services made up a small part of the business model. The bank concluded this structure was designed to defraud the public. TVI Express's compensation plan paid only for recruitment, not for product sales.
The Lesotho declaration adds to TVI Express's ongoing problems across Africa. South Africa previously banned the scheme. Namibia has faced regulatory action against it for months.
TVI Express initially mounted a strong defense against such bans. The company now appears to have largely abandoned its African members. It instead pursues new markets in countries where it remains unchecked.
The company recently launched in the Philippines. Its longevity there remains questionable, given its track record in Africa. Regulatory bodies should take a proactive stance against such schemes. In the Philippines, the Bangko Sentral ng Pilipinas, the nation's central bank, holds this responsibility. The Bangko Sentral ng Pilipinas should note one of the largest modern pyramid schemes has established operations within its jurisdiction.