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:

  1. Tiens Lanka Health Care, aka Tiens International, Tiens Group – Chinese MLM company targeting third-world countries
  2. Best Life International – Moringa supplement themed MLM company
  3. Global Lifestyle Lanka – multi-niche product range MLM company
  4. Mark-Wo International – appears to have collapsed (website abandoned), might be being promoted offline
  5. VML International – appears to have collapsed and/or been abandoned
  6. Fast 3Cycle International, aka F3C – collapsed early 2021
  7. Sport Chain App, aka Sports Chain ZS Society Sri Lanka – crypto scam
  8. 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.