HYIP Investors May Face Money Laundering Charges

Source: http://www.digitalmoneyworld.com/hyip-investors-may-face-money-laundering-charges/

Gareth Manning from the Jamaican Gleaner is reporting information from an interview with attorney-at-law and University of the West Indies lecturer, Shirley-Ann Eaton.

HYIP ‘investors’ now stand to lose big as government laws and regulations change to target HYIPs and online ‘investments’. Gareth Manning did a recent interview with Shirley-Ann Eaton who is a former secretary of the Jamaica Bankers’ Association. Eaton says that money ‘invested’ with these type of schemes (A3union was included) CANNOT be returned by the court system in Jamaica. She points out, this is because the law does not cover schemes offering excessive interest on money loaned. The recovery provision only covers vehicles that carry a rate of 40% or less per year. The ridiculously high rates like 133% in 30 days is NOT covered by Jamaican law.

Furthermore, participants in the HYIP can ALSO FIND THEMSELVES IN PRISON if the schemes are found to be engaged in any sort of money laundering. Because these schemes are unregulated and high yielding, they do not operate within the normal regulated banking and securities system which makes them a desirable vessel for money launderers.

“I don’t know of anywhere in the world where anybody is getting a return of 120 per cent per annum on any kind of investment,” Eaton argues. “What if, willfully or inadvertently, these schemes contain proceeds of crime? What if money being given to them actually is criminal proceeds?”

Under the recently enforced Proceeds of Crime (Money Laundering Prevention) Regulations in Jamaica, any person can be found to have committed an offence under the act if that person knows or believes or even has reasonable grounds for knowing or believing that those handling their funds are engaged in laundering. If your HYIP is not registered with the proper securities and tax related authorities and is not reporting your tax positions on a gain or loss, that is reasonable grounds to believe.

If convicted before a resident magistrate, that person could be ordered to pay a fine not exceeding $1 million or be sentenced to a term not exceeding one year or to both a fine and imprisonment. If indicted before a Circuit Court, however, that person could face imprisonment of up to 10 years and a fine. In addition to prison terms for laundering, investors could face severe pressure from tax authorities. as under law they should be filing their tax returns.

In Jamaica the tax authority is investigating the use of proceeds from these ‘investments’.

Tax Administration Department spokesperson Meris Haughton, while unwilling to disclose the approach being taken to recover the billions owed to it in income tax by these investors, noted that “all annual sums invested are taxable and we would not want to disclose exactly how we will recover those taxes”.

The Jamaican Financial Commission (FSC), there are over 20 “extremely high-yielding unregistered investment schemes operating in Jamaica”. Here is their published list.

• Caribbean Real Estate Investment Fund (CAREIF)
• World Wise Partners Limited
• A3 Union
• Swiss Cash
• Higgins Warner Music and Entertainment
• MayDaisy E-Partner Plan Club
• F1 Investments/F1 Holdings
• Wealth Builder and Associates
• Right Vision E-Partners Private Members Club
• Strategical Alliance Investment Company
• SGL Holdings
• Partner Financials
• Kingdom Investments Unlimited International (KIUI)
• Image Consultants & Services
• Nipo Farms
• USIMO
• Other investment schemes not Included because of court proceedings:
• Cash Plus Group
• OLINT Corp. Limited
• Overseas Locket International Corp.
• LewFam Investments and Trading Limited
• LewFam Investments Club

Source: jamaica-gleaner.com