The Agency for Financial Monitoring of the Republic of Kazakhstan (AFM) has been actively working to combat financial pyramids. A special project called "Combatting Financial Pyramids" has been launched under the leadership of Dmitry Malakhov, the head of the agency. The primary objective of this project is to shorten the lifespan of fraudulent schemes and reduce the number of individuals involved in them.
Utilizing IT tools to analyze social networks, AFM has blocked nearly 1,000 links to websites and accounts associated with financial pyramids this year, impacting around 600,000 people. Over the past six months, 36 financial pyramids have been identified online, leading to the discovery of 200 chat groups on platforms such as WhatsApp, Telegram, and Instagram. Currently, 182 of these chat groups have been closed down, preventing financial losses for 126,000 citizens.
To further eradicate these schemes, AFM has collaborated with partners in the Commonwealth of Independent States (CIS) to identify potential organizers of financial pyramids. Financial pyramids are considered one of the most perilous forms of criminal activity within the realm of financial investments. Their prevalence jeopardizes the financial stability of citizens, plunging them into debt, unmanageable loans, criminal behavior, and even suicide, thereby exacerbating social tensions while perpetrators profit.
AFM emphasizes that establishing a financial pyramid carries criminal consequences, including imprisonment for up to 10 years and asset confiscation. Recently, on March 18th, it was reported that the list of organizations exhibiting signs of financial pyramids in Kazakhstan has been expanded.
