PUBLIC WARNING NOTICE
The Centrale Bank van Curaçao en Sint Maarten (CBCS) has noticed several investment programs such as Quick Promo, Korsou Legacy Capital Group, and Elite Wealth Forum, being promoted on social media platforms.
The CBCS urges the public to be cautious when considering participation in these types of business initiatives. In some of the latest offers, the CBCS observed promotional materials that mentioned subscription-based participation, rewards for recruiting new participants, tokenrelated incentives and multiple compensation levels. These characteristics are common in pyramid schemes, which are high-risk, unsustainable and often lead to significant financial losses for participants.
The CBCS is furthermore concerned that certain investment programs also involve the use of virtual or crypto assets and other financial activities that may be subject to regulatory requirements. Conducting these activities without complying with applicable legal and regulatory requirements is in violation of the law and will be subject to supervisory, regulatory and enforcement action. To verify if an investment program is authorized to provide financial services, please consult the CBCS register at https://www.centralbank.cw/functions/supervision/supervised-institutions.
Warning signs
The potential presence of pyramid-type characteristics, whether or not combined with the promotion of virtual or crypto assets or electronic wallets (e-wallets), should be cause for serious concern. Moreover, the public should not assume that a financial offering is lawful merely because it is promoted online, through social media.
The public is strongly advised to remain particularly cautious where:
- compensation depends on recruiting new participants;
- returns are promised without a clear explanation of the underlying source of income;
- crypto assets or digital tokens are offered without a transparent valuation mechanism;
- crypto-assets or e-wallets are promoted without clear regulatory status;
- complex bonus or referral structures are used; or
- The overall business model lacks transparency.
The CBCS actively monitors activities that exhibit characteristics of pyramid schemes, unauthorized investment schemes, unauthorized virtual asset or crypto activities, and other activities that may violate laws and regulations within the jurisdictions of Curaçao and Sint Maarten.
Where the CBCS determines that activities are being conducted without the required authorization from the CBCS, or where there are violations of applicable laws and regulations, the CBCS will take supervisory, regulatory and enforcement measures. Such measures may include administrative sanctions, regulatory interventions, referrals to competent authorities and, where appropriate, reporting matters to law enforcement authorities and/or the Public Prosecutor’s Office.
If you suspect fraudulent investment schemes or financial activities, kindly report this to the CBCS by submitting a signal form on our website.
For more information, please also see the Preventing and Combating Illegal Financial Services circular on our website.
