SARB on drive to warn public about Ponzi schemes

SARB on drive to warn public about Ponzi schemes
Friday 27 September 2013 08:14

SABC




The Reserve Bank has appointed temporary inspectors for 75 cases relating to illegal deposit taking.(SABC)
TAGS:
PretoriaReserve BankFSBNCRHlengani MathebulaPyramidPonzi

The Reserve Bank has warned the public against getting involved in illegal deposit-taking schemes also known as pyramid or Ponzi schemes.

It says the economic consequences of being involved in such schemes are far reaching. Last year the bank received a number of complaints and appointed temporary inspectors for 75 cases relating to illegal deposit taking.

On Thursday, the Reserve Bank launched a national campaign to raise awareness around such activities. The bank's head of group strategy and communications, Hlengani Mathebula says: "If anything comes to you with unreasonable returns, all you have to do is a basic thing, is this thing from a registered institution.”

Mathebula says a registered institution will be either by the FSB, the National Credit Regulator and the South African Reserve Bank.
“You just need to take a little bit of time and make the necessary calls. You don’t have to go and invest in a particular registered financial advisor but that financial advisor can give you an advice that will allow you to decide that I’m not going into this space.”