The National Reserve Bank of Tonga issued a public warning urging vigilance against Ponzi and pyramid-type schemes that it says are increasing in Tonga and causing serious financial losses, including among Tongans overseas. It also reminded the public that such schemes are offences under the Banking Act 2020. The alert notes that these scams often present as legitimate investments, savings plans, business ventures, or online trading programmes and may be promoted through social media, messaging apps, churches, workplaces, and family networks. NRBT highlighted common warning signs including promises of high, fast, guaranteed returns with little or no risk, pressure to recruit others, vague explanations of how profits are generated, requests for payments via cash, remittances, mobile money, or cryptocurrency, and discouragement from checking with banks or financial authorities. It further stated that taking funds from the public for investment or lending at the operator’s risk is considered banking business and may only be conducted in Tonga by entities with a banking licence granted by NRBT under section 7 of the Banking Act 2020, and that involvement in Ponzi or pyramid schemes can attract penalties of up to a 1,000,000 fine and up to 30 years’ imprisonment, or both. NRBT encouraged anyone approached by suspected schemes or unauthorised banking business to report the matter to the NRBT or Tonga Police, and attached a non-exhaustive list of reported scams while noting that scams frequently change names and may be promoted from abroad, including New Zealand.
National Reserve Bank of Tonga 2026-04-21
National Reserve Bank of Tonga warns of rising Ponzi and pyramid schemes and unlicensed investment taking
The National Reserve Bank of Tonga issued a public warning on rising Ponzi and pyramid schemes, stressing these are offences under the Banking Act 2020 and may only be run by entities it licenses. It highlighted red flags such as promises of high, fast, guaranteed returns, pressure to recruit others, vague profit explanations, and requests for payment via cash, remittances, mobile money, or cryptocurrency. The authority warned that involvement can attract penalties of up to a 1,000,000 fine and 30 years’ imprisonment and urged the public to report suspected schemes or unauthorised banking business to the Bank or Tonga Police.