Social media enticing citizens, expats for investing money for quick returns

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‘A time bomb similar to real estate fraud’

KUWAIT CITY, Dec 29: “Learn how you can earn extra monthly income. You can earn 1,500 or 1,700 dinars a week.” The social media is abuzz with this phrase seeking to attract the attention of Kuwaitis and expatriates and entice them to invest their money for quick returns, reports Al-Rai daily.

However, the companies which do not disclose their identities do not explain the exact nature of their work, but claim they have the license to operate, but the truth is contrary to what these companies claim according to sources from the Ministry of Commerce and the Capital Markets Authority.

This phenomenon has raised questions among citizens and residents about the position of Ministry of Commerce and Industry and the Central Bank of Kuwait. The sources said these companies are fictitious and there is a possibility of those fall prey to such gimmicks are bound to lose their money.

They are being used as a front of companies and trademarks licensed by the ministry but this does not mean they have a mandate from the Capital Markets Authority as per law No. 7 of 2010 and its executive regulations, which means they are illegal.

The observers have described the ‘issue’ as “a time bomb similar to the real estate fraud.” Sources close to the issue have told the daily, “none of the aforementioned entities are licensed by the Capital Markets Authority,” pointing out it is an organized crime aimed at luring dealers and called on investors to investigate the promised huge returns through virtual currencies and other sectors away from official frameworks.

The sources pointed out that the Capital Markets Authority is following up the issue in coordination with the other regulatory bodies.

This news has been read 16842 times!