Ponzi Schemes in the Caribbean

Author/Editor:

Ana Carvajal ; Hunter K Monroe ; Catherine A Pattillo ; Brian Wynter

Publication Date:

April 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

In several Caribbean states, unregulated investment schemes grew quickly in recent years by claiming unusually high monthly returns and through a system of referrals by existing members. These are features shared with traditional Ponzi schemes and pyramid schemes. This paper describes the growth of such schemes, their subsequent collapse, and the policy response of regulators, and presents key policy lessons. The analysis and recommendations draw on country experiences in the Caribbean, and in such diverse countries as the United States, Colombia, Lesotho, and Albania.

Series:

Working Paper No. 2009/095

Subject:

Banking Currencies Financial institutions Financial regulation and supervision Foreign exchange Legal support in revenue administration Money Revenue administration Securities

English

Publication Date:

April 1, 2009

ISBN/ISSN:

9781451872422/1018-5941

Stock No:

WPIEA2009095

Pages:

44

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