During the sidelines of the Financial Services Lawyers Conference in Mangochi, RBM general counsel and bank secretary George Chioza said this is despite the pyramid schemes being illegal services, they are recognized under exempted activities in section 4 of the Microfinance Act.

Chioza explained that Pyramid schemes are private arrangements where people make decisions to go and invest Money, and unfortunately the central bank is alerted when the particular investment is deemed shady. “It could be a gap with the regulation, but it is a challenge to the extent that people still believe that the registrar of financial institutions must be on top of all financial transactions. At the moment, it’s not

possible to do that.” said Chioza.

Meanwhile, Chioza has emphasized that the central bank is undecided on cryptocurrencies, which like the Pyramid schemes, may not be from legitimate dealers. “We have not said yes or no but we know there are cryptocurrencies. Take caution when you are dealing in those currencies,” Chioza said.