Bank of Namibia Warns Against the Business Activities of Global Green Network

Bank of Namibia Warns Against the Business Activities of Global Green Network, Trading as Global Green Trading

The Bank of Namibia (“the Bank”) on 02 September 2020 issued a media statement cautioning the public on the business activities of Global Green Network. The media statement was issued following the outcome of the investigation on the business activities of Global Green Network which revealed that its business activities contravened section 55A of the Banking Institutions Act, 1998 (Act No.2 of 1998) as amended (“the Act”). 

The outcome of the investigation revealed that the business activities of Global Green Network constitute an illegal financial scheme in contravention of section 55A of the Act, due to the following reasons: 

- Global Green Network does not offer any products for sale and their marketing strategy places emphasis on the recruitment of new members. 

- The company features a referral system that encourages participants to continuously recruit new members to earn income. As new members are recruited, existing members advance in the business hierarchy, earning higher commissions as their recruits (downline) bring in more people. 

- Commission is only earned upon recruitment of new members. 

- The main source of income for Global Green Network is derived from the joining fee of new members, with the promise of earning money upon the recruitment of new affiliates. As soon as the recruitment of new members ceases, the affiliates at the bottom of the structure will not be rewarded. The business structure is thus not sustainable and will likely result in the public losing their money.