Why you need a checklist
Every year brings new "unique opportunities": a share in a café, mining, marketplace trading, "arbitrage", importing cars to order, halal partnerships. Some are honest businesses, some are just weak, and some are fraud that looks very convincing. Go through these seven steps before transferring money. The checklist does not tell you where to invest; it shows where the risk is clearly higher than claimed. Any investment can lose money, and returns are not guaranteed.
Step 1. Licence and regulator
Ask: who authorised this organisation to take money from the public?
- Banks, microfinance organisations, pawnshops — licensed by the Central Bank, which lists them on its website.
- Brokers, investment funds, securities issues, insurers — licensed or registered by the National Agency for Perspective Projects (NAPP), the capital market regulator.
- Exchange-traded shares and bonds — registered issues traded through licensed brokers on UZSE.
Company registration is not a licence. If you are shown a registration certificate or foreign papers instead of a licence, stop.
Step 2. Business model
Ask for a plain explanation: what does the company do, and who pays it? An honest answer can be checked: "we buy wholesale at X, sell retail at Y, the margin is Z, half the profit goes to investors." Worrying answers: "trade secret", "an algorithm / AI / arbitrage, hard to explain", "just look at other members' payouts".
Step 3. Where the return comes from
Compare with alternatives. If banks pay, say, 20% a year with a guarantee and a project promises 5% a month (around 80% a year compounded), ask: why doesn't this business simply borrow from a bank more cheaply? Usually because there is no real business with such returns and payouts come from new members' money.
Red flags: "guaranteed" income unrelated to business results, a fixed high rate every week or month, "risk-free returns", identical payouts in any market.
Step 4. Referral pressure
If a noticeable part of the income comes from bonuses for bringing in friends and family, that is a pyramid sign. Watch for status levels tied to recruits, deadlines ("bring three people by Friday"), requests not to read the news, and artificial urgency.
Step 5. Withdrawals
Find out in advance how and when you can get money out, where it goes (your bank account or an internal "balance"), and what happens if the company closes. Warning signs: withdrawals "temporarily suspended", new "unlock fees", pressure to "reinvest to keep bonuses", or a demand to pay "tax" before withdrawing.
Step 6. Pyramid and Ponzi signs
| Sign | Honest project | Warning signal |
|---|---|---|
| Income | Depends on results, can be zero | Fixed, high, "guaranteed" |
| Source of payouts | Business revenue | New members' money |
| Licence | Yes, verifiable | None, "foreign", "not needed" |
| Transparency | Reports, address, management | Only a Telegram chat and managers |
| Growth | Product advertising | Recruitment bonuses |
| Withdrawal | Per contract, to a bank account | Delays, "withdrawal fees" |
| Reaction to questions | Calm answers, documents | Pressure, "you just don't get it" |
One sign is enough to stop and dig deeper; three or more is a strong reason to walk away.
Step 7. Documents to request
A contract stating parties, subject, profit and loss sharing, terms and exit; the licence number and date; last year's financial statements, ideally audited; for halal projects, a shariah board opinion with named members; and matching company details on the contract and the payment. Never send money to a personal card of a "manager" or "curator".
Quick 10-question test
Do I have a licence I checked myself? Do I understand how the company earns? Is the return realistic versus deposits? Does the contract say losses are possible? Does my income depend on recruits? Can I withdraw to a bank account in a clear time? Is there a legal address and named management? Did I get the contract before paying? Can I afford to lose this money? Am I being rushed? Any "no" or "not sure" means wait and check.
If you have already invested
Stop adding money and do not invite others, keep the contract, chats, receipts and statements, try to withdraw under the contract, and if fraud signs are confirmed, contact law enforcement and the regulator. See our lesson on protection from financial fraud.
Next step
Compare the project with clear alternatives in the ONPUL investment products section — deposit rates, bonds and halal products with terms and check dates. If the project's return is many times higher, read this checklist again.