Moroccan Central Bank Warns of Online Ponzi Schemes Promising High Returns

In a press release, the two institutions reported the presence on the internet and social networks of companies that collect sums of money from the public, deposited into accounts opened with banks, promising exceptional returns that would be achieved from the investment of these funds in the financing of goods or service production activities.

The two financial bodies warned against these practices, calling on people not to entrust funds or make investments with the aim of achieving a financial return without verifying whether the company concerned has the necessary authorization. These activities are indeed governed by a legal framework, they stressed.

The press release also states that this is a fraudulent "Ponzi" scheme that allows companies to recover funds by promising returns unrelated to economic reality. Thus, the first depositors are reimbursed with the funds collected from the following investors through an incentive system that allows the constant recruitment of new investors. The last investors are slow to recover their returns and suffer the losses of the fraudulent system.

The warning from BAM and AMMC also concerns the "pyramid" sales system prohibited by law (Article 58 of Law 31.08 laying down consumer protection measures). This commercial practice consists of encouraging a client member of this system to in turn recruit other clients, making them hope for financial gains resulting from the continuous increase in the number of recruited persons. The income of the members comes mainly from the amounts paid by the recruited persons, explains the note.