Sana'a: The Central Bank of Yemen has issued a stern warning to all citizens, financial institutions, and electronic wallet services regarding the rising threat posed by fraudulent and unlicensed entities engaged in commercial and investment activities. These entities, which are involved in investment and pyramid schemes, have been identified as a significant threat to the national economy and citizens' financial well-being.
According to Yemen News Agency, the Central Bank of Yemen released an official statement underscoring the legal framework established by several laws, including Law No. (14) of 2000 concerning the Central Bank of Yemen, Law No. (199) of 1995 concerning Exchange Operations, and others pertinent to combating money laundering and financing terrorism. The statement highlighted the emergence of fraudulent entities that operate under the guise of selling low-value goods at inflated prices through network and pyramid marketing schemes.
The fraudulent entities have been deceiving citizens by promising substantial returns on investments, contingent upon recruiting others into their marketing network and transferring funds abroad. This practice has led to significant financial losses for individuals and has adversely impacted Yemen's foreign currency reserves. The statement specifically named entities such as My Lifestyle, Pharmacy, Forever Living Products, DXN, Oriflame, Jifu, Herbalife, Avon, and Jeunesse as examples of such schemes.
The Central Bank has advised all stakeholders, including banks and money transfer companies, to refrain from engaging with these entities or their representatives due to the fraudulent nature of their operations. It emphasized the potential legal repercussions for those who choose to engage with these schemes and assured that it would pursue all necessary legal actions against these fraudulent activities.
Additionally, the bank has made provisions for citizens to report suspicious entities and verify the legality of any entity they wish to engage with by contacting a dedicated toll-free number: (8006800).