What is illegal fundraising (unauthorized deposit-taking)?

Illegal fundraising is the unlawful practice of raising money from the general public, without authorization or a license from the financial authorities, by promising guaranteed principal and high returns.

Typical features include multi-level schemes that pay referral bonuses for bringing in new investors, money transactions with no actual trade in goods, and presenting business registration and the like as if the government had permitted the fundraising. If someone offers to guarantee both principal and high returns, suspect illegal fundraising first and check with the Financial Supervisory Service.