Business News of Wednesday, 10 May 2017
The Bank of Ghana has warned the public against the activities of a company it says has been taking cash deposits from people without the proper licencing.
According to the Bank, the operations of the company, MMM Ghana, constitute that of a ponzi scheme through a virtual office “hence anyone who does business with MMM Ghana does so at his or her own risk”.
MMM Ghana claims to be in 118 countries across the globe and with over 226 million participants.
It pride itself of giving participants a 30 per cent monthly interest on their deposits and states that it does not operate an investment scheme but rather a “social financial network” .
“Yes, it is possible to get 30% per month here, but this is not an investment program! This is a community of ordinary people, selflessly helping each,” it states on its website The Company is said to have over 10,000 clients in Ghana and moves from place to place mobilising cash deposits from the unsuspecting general public.
“The institution’s operations are contrary to section 6(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and also threatens the safety and soundness of the financial system,” BoG said in a statement Wednesday.
BoG says MMM Ghana is not licenced to engage in any form of deposit-taking activity.