Did you lose your money during MMM Ponzi scheme saga? Were you able to recover from it?
Sadly, another suspected Ponzi has defrauded some Nigerians and Sabinus is in the eye of the matter.
If you are running a Ponzi business, where you deceive people with unsustainable high Return of Profit (ROI), you are likely to go to jail.
The Investment and Securities Service Bill 2023 finally scaled through the final hurdle of the National Assembly when the Senate passed it on March 29.
The National Assembly has passed the Investment and Securities Bill, which includes provisions for possible jail sentences for anyone who advocate Ponzi schemes in Nigeria.
The passed bill prohibits Ponzi/pyramid schemes as well as other illegal investment schemes and prescribes a jail term of not less than 10 years for promoters of such schemes.
The House of Representatives approved the bill in December, and it is anticipated to help the capital market function and promote the nation’s continuous economic diversification.
The only thing left is for the president to sign it into law.
Investments And Securities Bill 2023
The law is anticipated to protect investors, adequately regulate the market, lower systemic risks, and provide for more severe penalty for operators of Ponzi schemes, according to Senate President Ahmad Lawan, who made the statement during the plenary.
He declared: “The bill for an act to repeal the Investments and Securities Act 2007 Act No. 29 2007 and enact the Investments and Securities Bill 2023 to service the SEC as the apex regulatory authority for the Nigerian capital market as well as regulation of market to ensure capital formation, to protect investors, maintain fair, efficient and transparent market and reduction of systemic risk and for related matters is hereby passed.”
Babangida Ibrahim, the chairman of the house committee on capital markets and institutions, said that the ISB 2023 was capable of transforming the capital market, attracting foreign investors, and boosting investors’ confidence, among other things.
Ibrahim said:”The bill seeks to repeal the existing Investments and Securities Act 2007 and to establish a new market infrastructure and wide-ranging system of regulation of investments and securities businesses in Nigeria, especially in the areas of derivatives, systematic risk management, financial market infrastructure and Ponzi scheme and platforms”.
Ponzi schemes, also referred to as pyramid sales schemes, are a type of money laundering where investors are attracted by the promise of high returns on their investments after a predetermined amount of time.
Typically, this cycle becomes unsustainable when the backlog of old investors who are eligible for payments exceeds the investments coming into the system.