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Special unit to combat pyramids
 By Duruthu Edirimuni
The Central Bank has set up a special investigation unit backed by the CID to combat pyramid and network marketing schemes. "We have engaged three CID officers to work full-time with us to investigate these schemes," a senior Central Bank official told The Sunday Times.

He said a Chief Inspector, an Assistant Superintendent and an Inspector would work with the regulator relating to any violation of the Banking Act Amendment 83C, prohibiting pyramid and network marketing schemes.

Responding to questions after the media briefing following the SAARC Finance Seminar on pyramiding last Friday, the Central Bank's Banking Supervision Director Joan de Zilva said that the GoldQuest scheme was now 'illegal' in the country.

"It is clearly stated in the amendments to the Banking Act," she clarified, but added that convicting them was a matter for the law enforcement authorities. Meanwhile, the regulator, Additional Exchange Controller H.M.P. Herath has estimated that US$ 15 million had been pumped out of the country on payments for GoldQuest over the past two years. "We have sued eight people with fines up to Rs. 88 million since last year," he said.
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