Kyrgyz citizens have been urged to treat online investment adverts with caution

The Financial Supervisory Authority has urged citizens of Kyrgyzstan to exercise caution regarding online advertisements for investment projects, particularly those promising high or guaranteed returns.

On social media and other online platforms, users are being encouraged to invest money in various projects, participate in private investment schemes and engage in other forms of collaboration. Such advertisements may appear convincing and give the impression that the offer is reliable.

However, the use of financial terminology, references to investment instruments and promises of high returns do not confirm the legitimacy of an organisation’s activities nor guarantee the safety of the funds invested, the agency emphasised.

Before investing, the Financial Supervisory Authority recommends checking:

• whether the organisation is registered and holds the necessary licences;
• whether the company’s representatives are authorised to raise funds;
• how the terms of use and repayment of funds are set out in the contract;
• what the organisation’s financial position is;
• what risks the investor faces.

The agency also pointed out that Kyrgyzstan’s advertising legislation prohibits guaranteeing, promising or implying future returns on financial and investment services.