The Bank of Namibia has issued a pyramid scheme warning against Karatbars International.

The Bank of Namibia (BON) is the country’s top financial regulator.

In a May 3rd media release, the BON reveals an investigation into Karatbars International revealed it was a pyramid scheme.

The outcome of the (Karatbars) investigation by the BON has revealed…

Members income is earned based on the successful recruitment of new participants to purchase new small gold embedded cards.

The business practice does not have tangible products of sale to prospective members or affiliates.

The fees paid for the small gold embedded card is used to render legitimate to the business practice.

However, the real attraction of new participants to Karatbars is not the purchase of the gold card, but the desire to earn money through the introduction of new members to the business practice.

(Karatbars’) business practice is not sustainable without the continuous recruitment of new participants who are eligible to pay a joining fee.

Pyramid schemes are prohibited in Namibia as per the Banking Institutions Act.

BehindMLM reviewed Karatbars back in 2014 and, based on its business model, also concluded it was a pyramid scheme.

In light of Karatbars International being a pyramid scheme, the NOB has the company and its promoters to cease doing business in Namibia.

At the time of publication Namibia doesn’t appear to be a major source of traffic to Karatbars’ website.

According to Alexa however, neighboring South Africa currently makes up around a quarter of all Karatbars website traffic.

Over the past few months Karatbars’ gold slither recruitment scheme has taken a back seat to their KBC passive investment opportunity.

Hat tip to the reader who alerted us to an article discussing Coin Telegraph taking on Karatbars as a direct advertiser.

The Namibia ban is mentioned in the Cointelligence article, which was the first I’d heard of it.