MD Ahsan Ullah :
Bangladesh Bank has asked Nagad, a new financial service provider of Bangladesh Post Office to implement antimony laundering measures in its operations and follow regulations to combat money laundering through its channel.
The direction came at a meeting between Bangladesh Financial intelligence Unit (BFIU) and Bangladesh Postal Department along with its technology partner Nagad held at Bangladesh Bank recently.
Bangladesh Bank is worried over money laundering risks through Nagad channel, which is running its business outside the supervisions and regulations of Bangladesh Bank. The big concern is that Nagad allows a person to transact Tk 2.50 lakh a day- nearly 9 times higher than the central bank’s set limit for other similar service operators.
Higher amount of transactions through such an unregulated digital service channel may trigger money laundering and distort the level playing field to halt the growth pace. So, Bangladesh Bank officials has set a smaller limit for all mobile financial service (MFS) operators in the country.
“We have asked the Nagad to take necessary measures to avoid money laundering through its channel”, Abu Hena Mohd Razee Hassan, the chief of Bangladesh Financial Intelligence Unit (BFIU) told The Daily New Nation.
BFIU is the central agency of Bangladesh responsible for analyzing Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs) & information related to money laundering (ML) /financing of terrorism (TF) received from reporting agencies & other sources and disseminating information/intelligence there on to relevant law enforcement agencies.
In the meeting, BFIU officials discussed the possible risks of money laundering through Nagad and other money transfer services offered by post offices with focus on transaction limits and stressed on the need to maintain a level playing field for all market players.
“We have already issued guidelines for all financial service operators in line with Financial Action Task Force (FATF) to reduce risks of money laundering through their channels. We have asked Nagad to follow the guidelines”, Razee Hasan also a former Deputy Governor of Bangladesh Bank said.
“Transaction limit, KYC and CDD are the vital issues of the guidelines”, he said noting that Bangladesh Post Office has assured us that they will comply the BFIU guidelines made on the basis of recommendations of FATF and implement KYC rules.
FATF, an inter-governmental body established in 1989 set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The BB’s concern is that higher amount of transaction through Nagad will not also poses risks of money laundering. It will also distort the level playing field and hit other operators to malign the growth of MFS industry and hit financial inclusion.
Bringing the issue, BFIU has requested the Bangladesh Post Office to cut down transaction limit in case of person to person dealing through its digital service-Nagad, sources in the meeting said.
The central bank has the responsibility to protect its mobile banking operators who have been playing a revolutionary role over the years to bring millions of unbanked people into the mainstream of economic activities that drives growth, he said.
“We are trying our best to solve the issue through negotiations”, he said.
In a market-driven economy, all the players deserve a level playing field. Mobile banking is a regulated field, so all players involved in similar business should follow the same guidelines. Nagad shouldn’t be an exception, he said.
Bangladesh Bank has asked Nagad, a new financial service provider of Bangladesh Post Office to implement antimony laundering measures in its operations and follow regulations to combat money laundering through its channel.
The direction came at a meeting between Bangladesh Financial intelligence Unit (BFIU) and Bangladesh Postal Department along with its technology partner Nagad held at Bangladesh Bank recently.
Bangladesh Bank is worried over money laundering risks through Nagad channel, which is running its business outside the supervisions and regulations of Bangladesh Bank. The big concern is that Nagad allows a person to transact Tk 2.50 lakh a day- nearly 9 times higher than the central bank’s set limit for other similar service operators.
Higher amount of transactions through such an unregulated digital service channel may trigger money laundering and distort the level playing field to halt the growth pace. So, Bangladesh Bank officials has set a smaller limit for all mobile financial service (MFS) operators in the country.
“We have asked the Nagad to take necessary measures to avoid money laundering through its channel”, Abu Hena Mohd Razee Hassan, the chief of Bangladesh Financial Intelligence Unit (BFIU) told The Daily New Nation.
BFIU is the central agency of Bangladesh responsible for analyzing Suspicious Transaction Reports (STRs), Cash Transaction Reports (CTRs) & information related to money laundering (ML) /financing of terrorism (TF) received from reporting agencies & other sources and disseminating information/intelligence there on to relevant law enforcement agencies.
In the meeting, BFIU officials discussed the possible risks of money laundering through Nagad and other money transfer services offered by post offices with focus on transaction limits and stressed on the need to maintain a level playing field for all market players.
“We have already issued guidelines for all financial service operators in line with Financial Action Task Force (FATF) to reduce risks of money laundering through their channels. We have asked Nagad to follow the guidelines”, Razee Hasan also a former Deputy Governor of Bangladesh Bank said.
“Transaction limit, KYC and CDD are the vital issues of the guidelines”, he said noting that Bangladesh Post Office has assured us that they will comply the BFIU guidelines made on the basis of recommendations of FATF and implement KYC rules.
FATF, an inter-governmental body established in 1989 set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
The BB’s concern is that higher amount of transaction through Nagad will not also poses risks of money laundering. It will also distort the level playing field and hit other operators to malign the growth of MFS industry and hit financial inclusion.
Bringing the issue, BFIU has requested the Bangladesh Post Office to cut down transaction limit in case of person to person dealing through its digital service-Nagad, sources in the meeting said.
The central bank has the responsibility to protect its mobile banking operators who have been playing a revolutionary role over the years to bring millions of unbanked people into the mainstream of economic activities that drives growth, he said.
“We are trying our best to solve the issue through negotiations”, he said.
In a market-driven economy, all the players deserve a level playing field. Mobile banking is a regulated field, so all players involved in similar business should follow the same guidelines. Nagad shouldn’t be an exception, he said.
