Economic Reporter :
Bangladesh Bank (BB) has waived the formalities of Online Transaction Authorization Form (OTAF) for online payments abroad through International Cards (ICs).
“To bring further simplification in online transactions, it has been decided to waive OTAF formalities for online payments abroad through ICs,” according to a BB circular issued on Sunday.
In this context, the circular said, it is advised that Authorized Dealers (ADs) shall make necessary arrangements to guard against illegitimate online payments abroad through ICs from Bangladesh like payments for participating in online casino or gambling, trading in forex or stock exchanges, purchase of crypto currencies or lottery ticket, purchase of goods or services originated in Bangladesh.
ADs shall strictly observe Know Your Customer (KYC) and Anti Money Laundering (AML) or Counter Financing of Terrorism (CFT) standards, follow usual reporting routine to Bangladesh Bank, and ensure compliance of regulations concerning duties or taxes applicable against the transactions, the circular added.
The central bank has advised banks to maintain “necessary arrangements to guard against illegitimate online payments abroad” by international credit card from Bangladesh.
Participation in online casino or gambling, forex or stock exchanges and purchases of cryptocurrency or lottery tickets and goods or services by way of credit card payment will raise red flags.
The dealers must “strictly” observe standards to prevent money laundering and terror financing, and to obtain information about the identity and address of the customers, the central bank said.
Regulatory compliance involving duties or taxes applicable to the transactions must also be ensured, according to the notice.
After the new rules had been introduced, bankers and customers slated the steps as ‘impractical’ and ‘time-consuming’.
Bangladesh Bank (BB) has waived the formalities of Online Transaction Authorization Form (OTAF) for online payments abroad through International Cards (ICs).
“To bring further simplification in online transactions, it has been decided to waive OTAF formalities for online payments abroad through ICs,” according to a BB circular issued on Sunday.
In this context, the circular said, it is advised that Authorized Dealers (ADs) shall make necessary arrangements to guard against illegitimate online payments abroad through ICs from Bangladesh like payments for participating in online casino or gambling, trading in forex or stock exchanges, purchase of crypto currencies or lottery ticket, purchase of goods or services originated in Bangladesh.
ADs shall strictly observe Know Your Customer (KYC) and Anti Money Laundering (AML) or Counter Financing of Terrorism (CFT) standards, follow usual reporting routine to Bangladesh Bank, and ensure compliance of regulations concerning duties or taxes applicable against the transactions, the circular added.
The central bank has advised banks to maintain “necessary arrangements to guard against illegitimate online payments abroad” by international credit card from Bangladesh.
Participation in online casino or gambling, forex or stock exchanges and purchases of cryptocurrency or lottery tickets and goods or services by way of credit card payment will raise red flags.
The dealers must “strictly” observe standards to prevent money laundering and terror financing, and to obtain information about the identity and address of the customers, the central bank said.
Regulatory compliance involving duties or taxes applicable to the transactions must also be ensured, according to the notice.
After the new rules had been introduced, bankers and customers slated the steps as ‘impractical’ and ‘time-consuming’.
