Bangladesh Bank has advised people to exercise caution when it comes to multilevel marketing. Pyramids, ponzi schemes, and multi-level marketing are characterized by the provision of unusually high profits and commissions based on referrals. which has resulted in lost client investments in the past.

On Sunday, March 9, the central bank issued a warning in this regard.

According to the warning, some institutions in the nation have previously engaged in fraud by paying commissions based on referrals, collecting customer deposits or investments illegally, and generating unusually high profits. Furthermore, there have been cases of fraud committed under the guise of offering products at unusually low prices in a variety of e-commerce platforms. According to the central bank, this type of fraud falls under the criminal category of money laundering. There has previously been legal action. The Bank Companies Act, 1991’s Section 31 (1) prohibits conducting banking activities, such as collecting deposits, without a license from Bangladesh Bank.

The warning also stated that it has been under investigation because of recent instances of similar fraud. The public of the nation has been advised to be discouraged from doing business with such institutions and to exercise extra caution in this situation, taking into account the protection of customer interests. Furthermore, Bangladesh Bank asks the public and media to let them know if they are aware of any such institutions.