Transcript
SIAO SIAO: So we did our research and investigations and found out that it seems to be a cryptocurrency but it seems to be operating like a pyramid scheme or Ponzi scheme as they say. And then further investigations into it led us to the decision to block it because it's too much of a risk for us.
TIM GLASGOW: So what does that ban entail?
SS: Basically we used our powers, under legislation - particularly exchange control regulations. So under that ban if they come to the bank or any financial institution and ask the bank to remit their money overseas, that's blocked.
TG: So you're finding you're having to be more vigilant about which companies you allow?
SS: Yip... Samoa's laws have not caught up... We don't have legislation to legislate cryptocurrencies. So we are currently working on that. for example we have amendments to our money laundering prevention legislation that will allow us to capture whoever promotes virtual currencies of cryptocurrency to be considered a financial institution - they will be required to have appropriate licences and the also the appropriate reporting for money laundering that we do.
TG: Do you think it's becoming quite popular to use cryptocurrency in Samoa?
SS: We're starting to see a lot of crypto currency promoters starting to be very aggressive with how their promoting their crypto currency promotions which I believe has caught on with the people here.
TG: In what ways are they targeting people?
SS: They've used other Samoans from overseas - identified the benefits. you know, pay 5000 tala and you're guaranteed a return of 100,000. You know if an average person listen to that, why wouldn't they go on board?
TG: Have you heard reports of people having to loan money to put money into these schemes?
SS: Yes. We've had reports from institutions where people have started to come to them asking for loans and when you ask for the purpose of the loan, it's to promote in this scheme. Which was one of the reasons that raised the concern to us. It is quite a big issue. People still want to remit money. They're really passionate about wanting to send their money overseas, so we believe that by blocking it, it's the only way we can stop the remittances going overseas.
