Business activities of Elamant are unlawful – Central Bank
The Bank of Namibia regulated an investigation on the business activities of ‘Elamant’, to determine whether their activities contravened the provisions of section 55A of the Banking Institutions Act, 1998 (Act No. 2 of 1998), as amended (‘the Act’).
The Bank said in a statement that the outcome of the investigation revealed that the business activities of Elamant contravenes section 55(A) because they promote a referral system which encourages existing members to continuously recruit new members in order to earn a promised monthly income.
“The main source of income for Elamant is derived from the payment of joining fees by new members and the monthly subscription fees paid by existing members, with the promise of earning money upon the recruitment of new members,” the Bank stated.
They highlighted that as soon as the recruitment of new embers stops, the members at the bottom of the structure will not be rewarded, therefore the business model is thus not sustainable and will likely result in the public losing money.
“Because of these reasons, we hereby advise the public not to join or become members of Elemant business activities, similarly, promoters of Elamant are hereby directed to stop their operations and promotion of this pyramid scheme immediately and failure to do so, we ill take further appropriate action as stipulated in the Act,” they warned.
Additionally, the Bank reiterated that its position on Crowd1 Network Limited remains unchanged in that, its business activities contravene section 55A of the Act, hence promoters and participants are directed to stop.
“Should any member of the public be aggrieved by this pronouncement or have any query relating to this communication, such person may contact us,” the Bank concluded.