The Securities and Exchange Commission together with the Economic and Financial Crimes Commission provided a new Memorandum of Understanding. EFCC Nigeria is now able to start the active investigation of Ponzi schemes, like the MMM.
The Memorandum was signed a few days ago at the EFCC in Abuja.
EFCC latest news inform that now the police can provide the total law enforcement and serve as the muscles for the SEC`s regulatory mandate. It provides the additional security for the capital market.
One of the most notable Ponzi schemes in the whole Africa MMM is now in the EFCC most wanted list. The development of the new law enforcement muscles opens the onslaught hunt against MMM, the Mavrodi Mondial Movement and Get Help Worldwide.
Mounir Gwanzo, the general and director of SEC, assured that the collaboration between two organizations can provide the quickest results in destroying the main target for now – MMM.
The collaboration between these two organization can indeed provide special benefits in the enforcement and investigation sectors. EFCC on MMM is not a Joke. EFCC Chairman stressed the need of concentrating resources for both organizations to contribute the common goal – destroying Ponzi schemes in Nigeria. EFCC and MMM can now be named the sworn enemies. Therefore, Ponzi schemes will be provided with now mercy from the side of the Government.
The newly established Commission also warned Nigerians not to take part in Ponzi schemes. Under the investigation process of EFCC happened to come cryptocurrencies, like Bitcoin, OneCoin, and Swisscom. According to the EFCC scam format and their website notification about the restrict of companies to promote and use other currencies for the regulatory processes within the country.
READ ALSO: Is MMM a ponzi scheme?
Is MMM legal?
MMM is currently illegal in many countries across the globe. One of this countries is Nigeria. Therefore, if you are the citizen of Nigeria – you can expect the problems with this company as Nigerian authorities define MMM as a Ponzi scheme.
Is MMM a Ponzi scheme?
Ponzi scheme was named after one famous American fraud who firstly used this scheme in the USA. A Ponzi scheme is described as a fraudulent investigating scam that promises high rates with little or no risks for the investor. The Ponzi scheme generates the returning for the old investors by taking the money from the old investors. This is quite similar to the pyramid scheme. The investors that managed to get close to the head of the pyramid have quite a chance to get money. In the same time, other people at the bottom of the pyramid may get nothing in return. The pyramid crashes when new investors can`t provide enough money to overrun the debts for the old investors.
The Mavrodi Mondial Movement uses the same methods for creating the pyramid as Ponzi used it. It promises people 30% monthly return on the investments. Nevertheless, like any Ponzi scheme, it will crash when the investments from the new members are not able to overrun the debts for the old members.
READ ALSO: Has MMM crashed in Nigeria?