What is a Get Rich Quick Scheme?
A plan which offers high or unrealistic rates of return for a small investment while at the same time promising that such investment is easy and risk-free. The following “Get-Rich-Quick” schemes are prohibited under the legislation administered by Bank Negara Malaysia : Illegal Deposit Taking Activities Illegal deposit taking is an act of receiving, taking or accepting of deposits (moneys, precious metal, precious stone, any other article etc.) from members of the public that promises a repayment with interest or returns in money or money’s worth without a valid licence under the Banking and Financial Institutions Act 1989 (BAFIA). Illegal Foreign Currency Dealings The following acts tantamount to illegal foreign currency dealings: o Buying or selling of foreign currency by a person who is not an authorized dealer unless such person has obtained the permission of the Controller of Foreign Exchange under the Exchange Control Act 1953 (ECA). o Buying or selling of foreign currency by a r
There are legitimate ways to accumulate a substantial amount of wealth in a relative short period of time, but they generally require a high amount of personal financial risk. A person may also get rich quickly by investing in a winning lottery ticket or hitting a jackpot on a gambling machine. An actual get rich quick scheme, however, may involve violating the law through fraud or other illegal activity. A get rich quick scheme can best be described as an effort to acquire instant wealth by taking financial or personal advantage of others. Selling multi-vitamins may seem like a legitimate enterprise, for instance, but when the ultimate goal is to create a multi-level marketing company it becomes a get rich quick scheme. Once the original investors have recouped their investment and a substantial profit, they will often pull out completely and abandon later investors. It may be helpful to look at each element of a “get rich quick scheme” separately to understand how it all works. The f
