The Service for Regulation and Supervision of the Financial Market under Kyrgyzstan’s Ministry of Economy and Commerce has reported cases of individuals’ money being raised illegally.
According to the regulator, limited liability companies and closed joint-stock companies without the relevant licence from the National Bank of the Kyrgyz Republic or permission from the financial regulator offer citizens “investment loan” or “investment” agreements. They promise guaranteed returns of 20% or more a year.
Only commercial banks and microfinance organisations licensed by the National Bank of the Kyrgyz Republic may accept money from the public on terms of repayment, payment and a set term. This is a banking operation, the regulator said.
Commercial companies may issue and publicly place investment instruments such as shares and bonds only after their prospectus has been registered with the financial regulator. Mass loan agreements with citizens at interest, offered by ordinary commercial companies, are not legitimate investment activity and may show signs of illegal financial or banking activity.
The regulator advised citizens to check a company’s licence or certificate on the National Bank’s website, nbkr.kg, or the regulator’s website, fsa.gov.kg, before transferring money. It also urged them not to be swayed by advertising or recommendations promising guaranteed high returns.
Citizens who find such schemes are asked to contact the financial regulator or law enforcement authorities immediately.
Translated from Russian using artificial intelligence. Source: Финнадзор
