The country is experiencing a concerning investment scheme that has captured the attention of Bhutanese citizens, particularly those in rural areas. The Tallwin Life Plan Scheme, operating through social media platforms like Telegram and WeChat, has been luring illiterate individuals with promises of high returns in a short span of time. Some are even promised investments in cryptocurrency. The Royal Monetary Authority has called the Tallwin Life Plan a Ponzi scheme and is refraining people from participating in and propagating the scheme.
In remote villages, where word-of-mouth carries significant influence, the Tallwin Life Plan Scheme has gained popularity among farmers and illiterate citizens.
Members are joining the scheme based on recommendations by friends. However, many have little or no knowledge of how it works and its potential impacts.
“In the initial period, people are given the impression that they can really make money. So, they ask for a small amount of investment and they are even given the profit. But in the later stages, they do not get their money back. So, there is a chance of a lot of people falling victim to the scam. Maybe a few of them make a profit, but the majority of them will face financial loss,” said Karma Dorji, director of the Department of Law and Order.
The scheme requires a Nu 2,750 investment to become a member, who then has to look for four more people to invest the same amount. This includes promises of a substantial return of over Nu 400,000 within 15 months.
Some of the victims of the scheme BBS talked to on account of anonymity say promoters lure them in with promises of huge sums of money.
“The group leader said that are no risks for our investments as long as we can add four more people. The leader told me that within 15 months, we will be able to get over Nu 400,000 for certain, and where each of us would get over Nu 100,000.”
Others added that the callers ask for money, which would be returned with double and sometimes triple the amount.
Scammers usually start the conversation by saying that we have won a certain amount, let us say Nu 10,000. They tell us to send Nu 2,000 promising to send the Nu 10,000 we won in return. Alternatively, they might ask for Nu 5,000 saying they will invest for us in cryptocurrency, and provide a return of Nu 15,000 after a certain days.”
The Royal Monetary Authority (RMA) released a public notification in November last year, cautioning people about the Tallwin Life Scheme.
The RMA has labelled the Tallwin Life Scheme as an illegal and fraudulent investment. According to the RMA notification, the scheme involves money laundering as it carries out unauthorised transactions outside the country.
Though the Royal Bhutan Police refused to comment on the matter, the Department of Law and Order said that a few promoters of the scheme have been identified and that the police are currently carrying out investigations.
In a recent notification, the RMA said that its Financial Intelligence Department has frozen several bank accounts of the individuals propagating the scheme to the general public. The accounts and individuals involved are investigated under the Anti-Money Laundering and Countering of Financing of Terrorism Act of Bhutan 2018.
According to the notification, the operation and engagement in this scheme are against various sections of the Financial Service Act of Bhutan 2011. It further violates provisions under the Penal Code of Bhutan 2004.
Karma Samten Wangda & Tashi Yangden
Edited by Sherub Dorji
