Prossy Nandudu 280909
Bank of Uganda is advising the public against gift circles and Pyramid schemes.
The schemes claim to offer business opportunities that can enrich those who participate.
Those who join are required to pay five thousand shillings into a series of bank accounts; in return each new member expects to receive payment from new members.
These eventually run out of new members. When this happens, some members are not paid but the owners still benefit.
Executive director Supervision at Bank of Uganda, Justine Bagyenda says similar schemes collapsed in 2003 with many people loosing their money.
She adds that as the central bank, they will continue freezing bank accounts of such institutions