Beware of ‘Quick-and-Easy’ Money-Making Ventures (2020-10-02)

Summary

This is a public awareness notice issued by the Cayman Islands Monetary Authority (CIMA) warning members of the public about fraudulent 'quick-and-easy' money-making schemes, such as pyramid schemes, 'friends and family savings circles', 'blossom programmes' and 'cash gifting programmes'. It explains how these schemes typically operate, lists common red flags, and provides questions the public should ask before participating in such ventures.

The notice does not apply to CIMA-regulated entities in a supervisory sense and does not create licensing, filing, or compliance obligations. Instead, it is aimed at the general public, cautioning them that these cash gifting circles are essentially illegal investment scams, and advising anyone who believes they may be a victim of such a scheme to contact the Royal Cayman Islands Police Services' Financial Crime Investigation Unit.

As a purely informational and educational notice, it does not impose any continuing regulatory requirements on financial services licensees or other regulated entities.