Banks asked to submit accounts info about London-based co

FE Team | Published: July 03, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The Bangladesh Bank (BB) has asked eight commercial banks, which had drawing arrangements with the London-based First Solution Money Transfer Ltd., to submit latest transaction profile reports of the company immediately.
"We have asked the banks to submit information about the positions of cover fund, non-resident taka accounts and guarantees with the London-based money transfer company," a BB senior official told the FE Monday.
He also said the central bank also directed the banks concerned to consult with their lawyers to overcome the situation.
Under the existing provisions, the local banks provide funds to the beneficiaries after confirming that equivalent foreign currency has been deposited by the overseas money transfer companies to the respective NOSTRO accounts of the local banks maintained abroad.
"We have made payments to the beneficiaries after receiving such funds through our NOSTRO account," a senior official of a commercial bank, which has a drawing arrangement with the company, told the FE.
He also said the bank has made transactions with the company on the basis of drawing arrangement.
The central bank will take necessary action after receiving such information from the banks concerned, sources in the BB said.
The central bank did not issue licence to the company for operating the money transfer business. It has already informed the Bangladesh High Commission in London about the matter.
According to British media reports, the money transfer company has closed down all its branches after misappropriating a large sum of money remitted by Bangladeshis living in Britain to their relatives in Bangladesh.
George Galloway, local MP of Bethnal Green and Bow areas in East London, sent a letter to the London Metropolitan Police authorities requesting them to take necessary punitive measures against the company.
He also demanded an inquiry into the misappropriation of thousands of pounds by the company chairman.