WINDHOEK - An investigation by the Bank of Namibia (BoN) into the business model of Jamalife Helpers Global has determined that the business contravenes section 55A of the Banking Institutions Act. As a result, the Bank has directed Jamalife Helpers Global to cease their operations and to repay all monies obtained from the public within a period of 21 days.
Failure to do so will result in the Bank of Namibia taking further appropriate action as stipulated in the Act.
In a communication dated Friday, May 24, the central bank appealed to members of the public to refrain from participating in the promoted activities of Jamalife Helpers Global and other schemes with similar operations as such participating members of the public may become criminally liable for violating the law.
BoN based its findings on Jamalife Helpers Global on the fact that its primary revenue stream flows from recruiting members to participate in the referral system rather than selling tangible goods or services. This means that Jamalife Helpers Global solely depends on a referral system to generate income in the form of a participation fee.
The BoN found that newly recruited members are required to pay an initial joining fee with the prospect of receiving commissions or incentives. These participants are then required to recruit new members in order to earn an income or commission from the business. “It is evident that the business cannot survive without new members paying a participation/joining fee. Thus, its business model is unsustainable and will result in members, especially those at the bottom of the scheme, losing their money. It is not possible for Jamalife Helpers Global to deliver on promised rewards and operate successfully without the regular inflow of joining fees obtained from newly recruited members,” read the BoN’s statement.
2019-05-28 10:34:45 2 months ago