We must say that Dubai authorities have taken a good step to stop illegal money transfer; which is causing big drop to remittance inflow into Bangladesh. We apprehend such shops and private agents are also diverting money from formal channel to other destinations from other countries.
Due to these illegal money-transferring shops, Bangladesh economy is incurring heavy losses in terms of phenomenal decline in remittance. But these shops started as illegal banking activities without license from the authorities concerned. Dubai authorities have identified the offenders and put on the dock. It appears that Bangladesh government may have taken the issue with Dubai government has taken the step in the backdrop of sharp decline in formal transfer of expatriates’ money. Such activities are depriving both the country’s banking services while helping to boost illegal trade.
As per reports, the shops were transferring money through SIM cards. They installed electronic devices and issued no invoices to the customers. They also use the devices to scribble down customer details. These devices were helping them to avoid regulatory oversight. It is very alarming that these shops are not only transferring remittances to Bangladesh; they are also operating within our country. Some influential people or business houses own these illegal shops and collecting foreign currency to use in informal imports or sending the money abroad. It is accelerating capital flight and amply explains why formal remittance inflow has sharply declined.
We must say the government should take this matter seriously and take steps to plug the loopholes. The country is losing hard earned foreign currency, which is going to third country for hoarding. Detectives must check these illegal shops, identify their owners and stop the illegal business.
The prevalence of this illegal business has three folds effect such as illegal channels deny accurate information on the flow of cash; secondly, they deprive authorized money exchanges and banks of their deserved share of business, and thirdly, customers depending on such illegal channels risk losing their hard-earned money. All these are contributing to the huge loss to the economy of Bangladesh. It cannot go unchecked for long to protect fair business and economy.
