Based on an official announcement by The Daily Star.
The Bangladesh Bank (BB) has issued a formal warning to the public against investing in multilevel marketing (MLM) schemes, citing significant financial and operational risks associated with such ventures. The advisory aims to protect consumers and investors from potential fraudulent activities commonly linked to MLM operations.
Multilevel marketing schemes typically operate by recruiting participants who earn commissions not only from direct sales but also from recruiting additional members into the network. These structures have been flagged internationally as high-risk investment models, with many operating as pyramid schemes that ultimately benefit only early participants while causing substantial financial losses to the majority of investors. The Bangladesh Bank's warning underscores growing concerns about the proliferation of such schemes in the domestic market and their potential impact on consumer protection and financial stability.
The regulatory warning reinforces Bangladesh's commitment to safeguarding investors and maintaining financial sector integrity. Citizens are advised to exercise caution when approached with MLM investment opportunities and to verify the legitimacy of any investment scheme through official banking and regulatory channels. The Bangladesh Bank continues to monitor financial activities and encourages public reporting of suspected fraudulent schemes to relevant authorities.
Source
Official announcement by The Daily Star
Published on: 05 April 2026
Original release: https://news.google.com/rss/articles/CBMiqgFBVV95cUxOcnhyMlE5VThBZXVYZkE1aHlPWkNqd3kyZktrMFJ2dTdRallxcVU1SDR5V0xVWVR3QUdnWXlFTnUxM0ppcjZKajNzV3hiNTlyQ0IwNk1rYUVpeWVIV0xDMkxIZmlacGU3dVBEd3NQNVo0UWZjWnQ4V1JqaUZWSnNaMjUzZjREQlYtMUQ3OHRtb2lkYmpUZ2YtSzNjdEdPaFVVRTVfdDFhMVVPQQ?oc=5
