Longrich Bioscience an ‘illegal financial scheme’
13 April 2019 | Banking
According to Longrich’s Facebook page, it offers health and beauty products in the country.
The BoN said it has assessed the entity’s business activities following “constant public queries on the legitimacy” of its affairs.
The BoN found that Longrich encourages members to recruit three new members to the scheme to supposedly buy products and earn monetary rewards and progress in status. “As a result, from level two upwards, the initiating member does not have to recruit new members, but he/she will benefit from the contribution of the new members subsequently joining under him/her.”
The sale of Longrich products isn’t mandatory.
“Due to the fact that the model relies on money paid in by new recruits, the business model is unsustainable and will result in participants, especially those at the bottom of the scheme, losing their money,” the BoN said.
People who joined Longrich with the aim of earning profits through the recruitment of new members must stop their membership with the entity with immediate effect, the central bank said.
Should Longrich and its promoters wish to continue with the sale of products, such products should be sold directly to customers, the central bank said.