Effect of Ponzi schemes on a country: the case of Ghana

Mohammed U.

Journal of Financial Crime, 2021 (Refereed Journals of Other Institutions) identifier

  • Publication Type: Article / Article
  • Volume:
  • Publication Date: 2021
  • Doi Number: 10.1108/jfc-09-2020-0177
  • Title of Journal : Journal of Financial Crime


© 2021, Emerald Publishing Limited.Purpose: This paper aims to examine the nature and operations of the two main Ponzi schemes (DKM Diamond Micro Finance Company and Menzgold Company Limited). It explores how such dubious schemes were able to circumvent financial regulatory bodies and their impact on the social, political and economic spheres of Ghana. Design/methodology/approach: The paper adopts both quantitative and qualitative research approaches and relies on secondary sources of data from the Bank of Ghana, World Bank and textbooks, etc. Findings: It was found out that inadequate supervisory role by financial regulators was a factor that made these schemes thrive in Ghana which had dire consequences on the socio-economic of the country. Originality/value: This is the first paper that explores the major Ponzi schemes in Ghana.