Bank staff involved in pyramid schemes may face disciplinary action.

Bank of Butterfield president and CEO Calum Johnston sounded the warning after Police probes into the illegal activity.

The schemes seem to have taken the Island by storm recently, with many people from all walks of life apparently involved.

Queues of people have reportedly spilled out on to the street, clutching money in their eagerness to participate in the schemes.

The Royal Gazette received several calls alleging involvement of personnel at both of Bermuda's major banks.

Mr. Johnston said his bank did not condone pyramid schemes and had issued a memo to staff.

"While we have to be careful not to infringe on the rights of our staff to do what they like on their own time, we do have policies that require staff to conduct their financial affairs responsibly.

"We unreservedly condemn pyramid schemes and if we find evidence that Bank staff were involved in promoting such a scheme we would certainly consider whether or not our policies enabled us to take disciplinary action.'' Mr. Johnston said he would be concerned at the implications of senior officials being caught up in such activity.

He added: "I must say on a personal note, I would be extremely disappointed if anyone but our most junior staff, indeed if any at all, are involved.'' Meanwhile, the Bank of Bermuda revealed that talks with management and staff on the issue had taken place.

Recognising the euphoria that had hit the Island over the whole issue, Mark Perrault, senior vice president, human resources of the Bank of Bermuda said: "The pyramid schemes are of concern to the Bermuda community in general.

"Discussions by Bank of Bermuda managers with their staff about the risks and potential illegalities of the schemes have been held within many divisions of the Bank, and discussions continue throughout the Bank.'' Calum Johnston