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South African bank shut down 2000 MMM clients bank accounts

By Ndode Zamda Rukumbi

South African bank Capitec has shut down accounts of clients who are part of the infamous alleged ponzi scheme, MMM.

Capitec bank CEO Gerrie Fourie told Fin24 in an interview on Friday that the accounts were shut to maintain the bank’s customers.

“We essentially shutdowns over 2000 accounts that (were) involved in the system. Some of the consumers become tremendously brutal and we had to bring in security guard’s,” said Fourie.

capitec mmm shutdown
Picture: Capitec Bank
Source: Official Capitec Bank Facebook page

Fourie also mentioned that after the bank was made aware of the system MMM accounts were observed and then frozen in early 2015. The MMM Pyramid system has been in the headlines a lot lately.

Founder Sergey Mavrodi announced that MMM Global system was shutting down because it was not able to pay out the profits.

“We regret to notify you that we have to close down the Republic Bitcoin. It was an experience, and regrettably, it unproductive.” said MMM Global on Facebook. “We turned out not to able to pay 100% per month.”

The system’s local branch, MMM South Africa, is one of the companies that are being inspected by SA Police Service Specialised Commercial Crimes Unit establish whether they breached the Consumer Protection Act.

The annual report of the South African Reserve Bank’s (SARB) supervisor department lately released a document viewing that the total number of organisations under assessment for operating  illegal deposit-takers – also known as pyramid system –increased  to 41 in 2015 compared to 25 in 2013. The watchdog has shutdown 71 system since 2011.

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