Kazakhstan intends to step up the fight against pyramid schemes. Today members of the Senate approved a bill on the activities of illegal financial organizations. The document provides for criminalizing the advertising, and escalating punishment for the creation and management of pyramid schemes. Henceforth, persons advertising these organizations will face from three to seven years in jail.
“Pyramid schemes are one of the most pressing issues with serious consequences. Therefore, improvement of the current legislation is of great importance in the fight against financial fraud, taking into account contemporary challenges. The advertising of the pyramid schemes now is a crime, and their creation and management will lead to harsher punishment. This will enhance the protection of citizens from involvement in illegal financial and investment projects,” said Maulen Ashimbayev, Chairperson of Senate, the Upper House of Kazakh Parliament.
The number of detected pyramid schemes in Kazakhstan is growing every year. In in 2019 the activities of 24 such organizations were identified in the country, then in 2020 their number reached 180. The relevant agencies reported that over 31,000 extortion cases from the population through pyramid schemes have already been recorded since the beginning of this year.
Translation by Saniya Sakenova
Editing by Saule Mukhamejanova
