The Central Bank of Sri Lanka has issued a warning on eight MLM pyramid schemes.
Scams named in the
Central Bank’s May 31st notice
include:
Tiens Lanka Health Care, aka Tiens International, Tiens Group –
Chinese MLM company
targeting third-world countries
Best Life International – Moringa supplement themed MLM company
Global Lifestyle Lanka – multi-niche product range MLM company
Mark-Wo International – appears to have collapsed (website abandoned), might be being promoted offline
VML International – appears to have collapsed and/or been abandoned
Fast 3Cycle International, aka F3C – collapsed early 2021
Sport Chain App, aka Sports Chain ZS Society Sri Lanka – crypto scam
OnmaxDT
– crypto Ponzi scheme
Following investigations, the Central Bank has concluded that the above schemes operate illegally in Sri Lanka.
Any person who directly or indirectly initiates, offers, promotes, advertises, conducts, finances, manages or directs a scheme in contravention of the provisions of Section 83C of the Banking Act, No. 30 of 1988 shall be guilty of a punishable offence.
The punishments for such offence include imprisonment for a period not exceeding three years or a fine not exceeding one million rupees or both imprisonment and fine.
Where the offence is committed willfully or knowingly, or with knowledge that the act will cause damage or harm to any other person, he/she is liable to rigorous imprisonment for a term not less than three years and not more than five years and to a fine of rupees two million or twice the aggregate amount in Sri Lanka currency revealed or divulged to have been received from the participants in the Scheme, whichever is higher.
It appears promoters of the scams have been telling potential recruits that they have approval of the Central Bank. This is of course baloney.
Further, the Central Bank of Sri Lanka denies the claim of certain elements of the society that it has reached some agreements with the institutions listed above which have been determined as conducting/having conducted pyramid schemes.
Accordingly, the Central Bank of Sri Lanka has requested the Hon. Attorney General to consider instituting criminal proceedings in term of the provisions of Section 83C of the Banking Act.
If anything further comes of the Central Bank’s warning we’ll keep you posted.
Update 21st January 2025 –
The Central Bank of Sri Lanka has
expanded its pyramid scheme list
to include twenty-one MLM companies.
🤖 Quick Answer
What MLM pyramid schemes has Sri Lanka's Central Bank warned about?The Central Bank of Sri Lanka issued a May 31st warning against eight schemes: Tiens Lanka Health Care, Best Life International, Global Lifestyle Lanka, Mark-Wo International, VML International, Fast 3Cycle International, Sport Chain App, and OnmaxDT. These operations involve various products ranging from health supplements to cryptocurrency, targeting Sri Lankan consumers through fraudulent business models.
Which of these schemes involved cryptocurrency components?
Sport Chain App, also known as Sports Chain ZS Society Sri Lanka, operated as a cryptocurrency scam. OnmaxDT functioned as a crypto Ponzi scheme. Both represented attempts to exploit investor interest in digital assets while utilizing typical pyramid scheme structures to generate fraudulent returns.
What was the origin of Tiens Lanka Health Care?
Tiens Lanka Health Care, alternatively known as Tiens
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