The Superintendence of Financial Services of the Central Bank (BCU) informed the general public and investors or savers in particular, “that the existence of advertising carried out through different mass media, by people or companies, has been verified, calling for investment or savings, promising returns on investment, which could involve Fraudulent operations based on Ponzi or pyramid schemeswhich lack financial sustainability”.
Through a communication, the monetary authority warned that the advertising referred to (carried out through websites, press media, social networks using in certain cases the promotion or sponsorship of public figures as well as under the modality of training courses), “I know make various offers of savings or investments (in cryptocurrencies, currencies, credits, unregulated investment funds, and others), promising certain returns on investment“.
“In this regard, it should be noted that the call to the general public for the application of their savings, can only be done through financial intermediation institutions authorized to collect deposits in the market or as an issuer registered in the stock market register”, remember.
Likewise, it is pointed out that, in the so-called pyramid schemes or Ponzi schemes “the alleged Earnings generated by early investors, rather than being generated by actual returns on their investment, are earned or generated by their own investments or from the money contributed by other investors who are joining the business. When investors intend to withdraw the money invested, usually they are evaded or invited to reinvest to avoid the withdrawal of the funds. This operation lacks any sustainability finance,” said the BCU.
Therefore, the BCU urged the public to be cautious about investment offers that present, in particular, the following characteristics:
- The persons or companies that offer the investment or savings, as well as the instruments offered, are not registered with the Central Bank of Uruguay.
- High returns with no risk or low associated risks are promised.
- Additional benefits are granted for referring or introducing new clients to the business or giving access to your network of contacts.
- They have the sponsorship and testimonials of public figures (often paid) who appeal to their personal or business experiences with the company.
“Faced with this type of offer, it is recommended to carefully analyze the nature of the investment to be made and the risks associated with the profitability offered,” the BCU said.
Likewise, it was suggested to the public that when investing, in order to find out if the company or the product offered are registered or have authorization to operate by the Superintendence of Financial Services of the Central Bank of Uruguay, check the records available on our institutional websitel.
