The Central Bank of Sri Lanka has determined that “TM App” operated a prohibited pyramid scheme, adding it to a public blacklist that now names 26 companies and applications.
The determination follows an investigation under Section 83(C) of the Banking Act, No. 30 of 1988, as amended, which makes it an offence to initiate, offer, promote, advertise, conduct, finance, manage or direct a pyramid scheme. The Central Bank published the notice on Wednesday and reissued the full list of entities it has ruled prohibited under the same provision.
TM App is the first addition since the Central Bank named Infinity Rover (Pvt) Ltd in a similar notice on July 1, when the list stood at 25 entities.
Who is on the list
The 26 named entities are Tiens Lanka Health Care, Best Life International, Mark–Wo International, V M L International, Global Lifestyle Lanka, Fast3Cycle International, Sport Chain app and Sport Chain ZS Society Sri Lanka, OnmaxDT, the MTFE App group (MTFE SL Group, MTFE Success Lanka and MTFE DSCC Group), Fastwin, Fruugo Oline App, Ride to Three Freedom, Qnet/Questnet, Era Miracle and Genesis Business School, Ledger Block, Isimaga International, Beecoin App and Sunbird Foundation, Windex Trading, The Enrich Life, Smart Win Entrepreneur, Net Fore International/Netrrix, Pro Care and Shade of Procare, SGO/sgomine.com, I.C.A.N. Advertising and its affiliated websites, Infinity Rover, and TM App.
The warning
The Central Bank urged the public to stay alert and avoid putting money into schemes built on recruitment-based models or promising unrealistic returns, Ada Derana reported. It said prospective investors should verify that an investment opportunity is legitimate before committing funds, to avoid financial losses.
Under the Banking Act, involvement in a prohibited scheme carries a penalty of up to three years’ imprisonment, a fine of up to one million rupees, or both.
Sources: Central Bank of Sri Lanka, Ada Derana.
