MPs of Kazakhstan plumped for taking action against financial pyramids

Kazakhstan, Astana, March 28 /Trend D.Mukhtarov/

MP Meruert Kazbekova applies to the Prime Minister Masimov with a deputy's request at the plenary meeting of the Parliament of Kazakhstan on Wednesday, the press service of the Parliament said.

At present, fraudulent activities of organizations working on the principles of "financial pyramids" is increasing in Kazakhstan. The society already has a negative experience of JSC "MMM".

Today, similar organizations have their offices in almost all cities of the country, and attract more gullible Kazakh people every day. Recently, in the cities of Petropavlovsk and Kokshetau law enforcement has stopped the work of Microcredit Organization "KazRosInvestproekt" which, under the cover name of "microcredit" actually engaged in fraudulent activities.

Currently, the threat of mass deception of the population in the result of the financial pyramid is compounded by new technologies used in this field. It became possible to carry out financial transactions and the involvement of participants through the Internet due to the development of telecommunications. A distinctive feature of such pyramids is an opportunity for the recipient of funds to remain anonymous. It greatly complicates the tracking of cash flows, bringing to legal liability and negates the possibility of a refund.

Thus, a financial pyramid of Sergei Mavrodi, entitled "MMM-2011," which accepts deposits in the form of electronic money in the virtual tickets at unreasonably high interest rates, operates in the country. The organizers do not hide that the pyramid can always go bankrupt.

There is no such definition as financial pyramid or the concept of "illicit trafficking of electronic money" in Kazakhstan's legislation.

Committee for the Control and Supervision of Financial Market and Financial Organizations of the National Bank of Kazakhstan only warn citizens about the vigilance and risk of loss associated with collaboration with "MMM-2011." Due to incoming requests, it was stated that the organization called "MMM-2011" has no authorized state agency license to carry out activities in the financial market, is not a financial institution and its activities are not subject to the control and supervision of the committee.

The authorized body justifies its inactivity by the lack of an appropriate legal framework. There are no special provisions to prosecute the organizers of the financial pyramids in civil and criminal legislation of Kazakhstan. Only legal entity can be prosecuted for fraud in accordance with the legal framework. Meanwhile there is no such legal entity as "MMM-2011" in Kazakhstan or other countries.

Establishment of a special law on financial pyramids is the only real way to deal with them. It is supported by international practice. Thus, there is a law prohibiting the creation of financial pyramids in the U.S. Bills which equated creation of a financial pyramids to fraud are developed in Russia and Ukraine.

The MP asked the Prime Minister to indicate what steps are being taken to combat the financial pyramids, including the use of electronic money, as well as any plans to develop the bill for the regulation of these phenomena and establishment responsibility for such activities.

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