Tokayev orders to deal with Ponzi schemes in Kazakhstan

AKIPRESS.COM - President of Kazakhstan Kassym-Jomart Tokayev at the meeting with the law enforcement structures and state bodies regulating and monitoring the financial market ordered to thoroughly investigate and deal with the Ponzi schemes in the country, Akorda reports.
The participants considered the issues concerning suppressing illegal activities of financial organizations that caused a serious material damage to citizens.
Tokayev said such kinds of activities should not happen in the country in future and underlined the need to increase the financial literacy of the population.
It was earlier reported that pawnshops and Ponzi schemes in Kazakhstan caused 5 billion tenge damage to citizens.
A Ponzi scheme is a form of fraud that lures investors and pays profits to earlier investors with funds from more recent investors. The scheme leads victims to believe that profits are coming from product sales or other means, and they remain unaware that other investors are the source of funds.