News Desk :
The Bangladesh cabinet has given its final approval to a draft of the ‘Payment and Settlement Systems Act, 2021’, which specifies a maximum of five years in prison, a Tk 5 million fine, or both for committing bank fraud through digital cheques, reports bdnews24.com
The decision was taken at a cabinet meeting chaired by Prime Minister Sheikh Hasina via video conference from the Ganabhaban on Monday.
There were regulations, but no precise laws governing bank payments and settlements, Cabinet Secretary Khandker Anwarul Islam told the media. As many digital transactions occur nowadays, the new law was proposed.
The draft law has 47 sections, including provisions for electronic money transfers. However, cryptocurrency, or virtual currency has not been included.
Cryptocurrency is not approved as a medium of exchange by the central bank, he said.
“The law has particular sections that outline offences. Section 4/5 defines how transactions will be conducted, how payments will be made, how they will be managed and how services will be offered. The draft also includes rules regarding board management, the minimum investment needed to be a member of the board, ownership and management, management of inspections, and rules of service. Provisions include the transfer of funds through electronic means and the issuing of digital funds by the central bank.”
“Section 37 of the draft law outlines the punishment for those who commit offences,” the cabinet secretary said. “Section 39 specifies that Bangladesh Bank can remove the owner, director, chief executive, manager, secretary or any other official of a company because of any offences they commit or are involved in.”
“The submission of false information, documents or statements may be punished by a maximum of three years in prison, a fine of no more than Tk 5 million or both,” Islam said.
“Fees have been imposed to protect the interests of the client.”
The new law was introduced to modernise the existing legal framework, the cabinet secretary said.
“Transactions and banking are becoming widespread now. It is getting digitised. These were not included in the old rules and regulations. That is why the whole system has been brought into the law separately,” he said.
Digital transactions have been in use through mobile money companies and online banking for some time. These transactions will get legal protection once the law is passed in parliament.
“For example, cheques will not be required. Some other tools will be made available. We need signature verification when a cheque payment is made. But now people are paying each other online through digital cheques. How do we verify who is giving what to whom? A transaction ID will be created for both parties. If this money is used for any immoral purpose or black-market dealings, authorities will be notified immediately.”
