Kazakhstan penalizes advertisement of Ponzi schemes

The Senate, the upper house of Kazakhstan’s parliament has adopted a new law banning the advertising of any financial pyramids in the country.

The new law makes the penalty for the creation and advertising of Ponzi schemes much tougher. Now it’s not just about a financial penalty: those who violate the law may find themselves in jail.

«Financial pyramids are one of the biggest problems we must fight. We have to constantly improve our legislation in order to make it meet all the modern challenges. The new law deems the advertisement of any Ponzi scheme a crime and brings a serious punishment for those who dare to break the law. The new rule is aimed at the protection of innocent people; they mustn’t be subjects to manipulation by those who are involved in illegal financial and investing activities,» said Maulen Ashimbayev, speaker of the Senate.

The official has expressed his hope that the law will decrease social tensions among Kazakhstan’s citizens who have suffered from Ponzi schemes.

The draft law was prepared by Kazakhstan’s parliament to eliminate any loopholes in the national legislature that prevent the advertising of financial pyramids from being prosecuted by law enforcement agencies. Now, when the advertising of Ponzi schemes is illegal it is much easier to do so.

The lower house of the parliament Mazhilis approved the draft law in early June. According to the new article #217 of the Criminal Code, the advertising of a Ponzi scheme might be punished by either a penalty ($12,950), 600 hours of community service, or three to seven years in jail.