On current situation on the investment market

The National Bank informs that recently there has been an increase in the activities of individuals raising money from the public under the guise of investment. They often conduct large-scale promotions emphasizing its favorable conditions, in particular offering interest rates on investments, which exceed the rates on deposits in commercial banks, as well as guarantees of repayment, and it is reported that they have no risk. 

It is important to note that investing is a fairly high-risk operation and requires careful study. Before entrusting your funds to an investment company, you need to investigate the nature of the person's activities, check the availability of licensing and permits, financial statements and other possible legal documents.

We draw the citizens' attention to the fact that investments bring income only from profitable projects (if the project is unprofitable, the investment can be lost completely), and the investment and interest on deposits must be returned within the stipulated period, regardless of profitability.

In most cases, however, under the guise of an investment company there are individuals with characteristics of financial pyramids, which, in turn, carries the risk of fraud and loss of invested funds of citizens.

Please be reminded that according to the requirements of the legislation, the right to attract deposits belongs only to the financial and credit organizations, licensed by the National Bank of the Kyrgyz Republic. Meanwhile, the activities of licensed entities are under close supervision of the National Bank ensuring the safety of deposits and timely fulfillment of their obligations to depositors.

Moreover, deposits invested in financial and credit institutions licensed by the National Bank are protected in accordance with the Law "On Protection of Bank Deposits.

Any other legal entities and individuals shall not have the right to raise funds in any form on a regular basis, including through public fundraising, on terms of urgency, repayment and payment.

Violation of this prohibition is punishable under the laws of the Kyrgyz Republic.

In this regard, attraction of funds from the public is possible only in the presence of licensing-permitting documents. In case of investment/transfer of funds, including under the guise of investment, to persons who do not have license-permit documents, citizens expose themselves to the risk of non-return and loss of funds.

It is worth noting that there are cases where such companies have carried out their activities in a similar way and criminal cases have already been filed against them.

The National Bank urges citizens to be cautious and be more careful about the process of investing money in so-called investments. Before investing, it is necessary to investigate all possible financial and legal documents and to require the execution of an investment agreement in appropriate paper form.