The Central Bank of Samoa, on 24 April, issued a warning about BG Wealth.
Photo: RNZI/ Koroi Hawkins
Samoa’s government has distanced itself from a cryptocurrency scam after three senior ministers, including the country’s Deputy Prime Minister and Minister of Finance, were pictured with individuals promoting an alleged wealth creation entity.
Last month, Samoans associated with ‘BG Wealth’ shared photos online with Samoa’s Finance Minister Mulipola Anarosa Ale-Molioo, Health Vaaaoao Salumalo Alofipo, Commerce, Industry and Labour Minister Fata Ryan Schuster.
The Central Bank of Samoa (CBS), on 24 April, issued a warning about the entity, stating “BG Wealth shows strong signs of being a scam, commonly known as a Ponzi or pyramid scheme”.
The bank said Ponzi and pyramid schemes usually present themselves as legitimate investment opportunities, often linked to cryptocurrency, trading, or business ventures.
“They commonly promise high or guaranteed returns and encourage people to recruit others to join. There is often no genuine investment or business generating profits,” the CBS stated.
Money paid by new participants is typically used to pay earlier participants, giving a false impression that the scheme is successful, the bank warned. “These schemes eventually collapse when new participants stop joining, causing most people involved to lose their money.”
On Tuesday, Ale-Molioo said via a news release that the government supported the “public warnings” issued by the CBS concerning BG Wealth.
She said the government has not endorsed BG Wealth in any form, and that no approvals, registrations, or authorisations have been granted for the company to operate as a licenced financial service provider in Samoa.
“Appearing in photographs with members of the public does not constitute government endorsement or approval of any private business or financial scheme,” she was quoted as saying in the release.
The government release added that there were no formal negotiations or government-led discussions underway regarding the registration of BG Wealth in Samoa. It stated that any business or financial entity wishing to operate in Samoa must follow the proper legal and regulatory application processes.
According to the New Zealand’s Financial Markets Authority (FMA), BG Wealth is part of a wider Ponzi‑style investment scam.
“People are losing significant amounts of money to the scam which is particularly prevalent in Tongan communities across New Zealand, Tonga, Australia and the United States,” FMA’s executive director warned in February this year.
On 15 May, the Washington State Department of Financial Institutions (DFI) issued a warning, “urging BG Wealth investors to use extreme caution before sending more funds to BG Wealth or any other associated company”.
Meanwhile, the CBS instructed all banks and financial institutions in Samoa to be alert for suspicious transactions linked to BG Wealth’s activities and to report any concerns to the relevant authorities.
Cryptocurrencies are not legal tender in Samoa.
