NDIC warns the public, identifies MMM schemes as virtual currencies

Nigeria Deposit Insurance Corporation, NDIC, has called on the public to be cautious over various Ponzi Schemes popularly called Mavrodi Mundi Movement, MMM, as well as other forms of digital and block-chain currencies.

The Managing Director/Chief Executive Officer of the NDIC Umaru Ibrahim, who made the called in Enugu at the on going 28th Enugu International Trade Fair said they use fairs as a unique platform for engagement with business community and the grassroots in enhancing public awareness on its core mandate to ensure Bank depositors are effectively protected.

According to NDIC, the MMM came in the form of virtual currencies such as Bitcoin, Ripples, Monero, Litecein, Dogecoin and Onecoin for medium of exchange and web based transactions which were neither authorised by CBN nor insured by the NDIC.

Ibrahim regretted that though the schemes have not gained official acceptance by the organisation, it seems to have gained popularity among the general public and even the media.

“It is disturbing to note that the Ponzi schemes have not only appeared in form of virtual and digital currencies in our financial landscape, they have also attracted the media and regulatory attention while members of the public view such schemes as investment opportunities and platforms for easy money,”.

The MD, represented by Nicholas Ayuba Controller, Enugu Zonal Office, also said that because of the disturbing nature of the Ponzi scheme, it has become necessary for monetary and regulatory authorities to commerce a study on the virtual and digital currencies for the purpose of consumer protection, financial education and the overall interest of the nation’s economic development.

The regulation, according to him is “in order to identify linkages and leverage on its usage for tax administration, revenue generation and benefits from anti-money laundry initiatives.  This underscores the need to come up with legal and regulatory framework for its acceptance in currency and banking regulations,” Ibrahim points out.

“It is equally important to draw your attention to the activities of some cooperative societies which have gone beyond their primary mandate of accepting contributions from their members. I wish to emphasize that the fact that cooperative societies are established to mobilize savings from their members only. I therefore call on non-members not to patronize them as they are neither licensed as deposit taking financial institutions nor insured by the NDIC,” he said.

Ibrahim, equally warned Nigerians on the dangers of keeping large sum of money in their homes, shops and market stall, saying that it is dangerous to do so because of fire and armed robbery attacks and advised they should keep their money in the safe custody of financial institutions.

In an address, President of ECCIMA, Ugochukwu Chime commended the role of NDIC in the protection of depositors fund with banks and other financial institutions.‬‪

Chime, represented by the 1st Deputy President of ECCIMA, Pharm. Emeka Udeze said NDIC remains a great confidence back-up for Nigerian teeming banking public who had hitherto suffered dearly in the past prior to the establishment of NDIC by losing their deposits whenever crisis occur in the financial sector. Ends‬

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