Bangladesh Bank (BB) Governor Abdur Rouf Talukder stated on Monday that approximately 200 mobile financial services (MFS) accounts are being closed each day due to their connection to Hundi, reports UNB.
The central bank is rigorously monitoring trade transactions through LC and mobile financial services to prevent money laundering activities, he mentioned.
The governor made these remarks during the opening ceremony of a money laundering prevention workshop held at the head office of the Criminal Investigation Department (CID) of the Bangladesh Police in the capital on Monday.
Rouf highlighted the steps taken to prevent money laundering since he assumed the role of Governor at the Central Bank. The governor emphasised the central bank's firm stance on banning Hundi.
He explained a scenario where expatriates send Tk500 to their families in the country, which then gets transferred through informal channels, resulting in the money remaining abroad. To counter this, payments are now made through MFS instead of home delivery.
Approximately 200 such accounts are being closed daily, with some being reopened under guarantees while others face permanent action, he added.
Discussing the campaign against money changers, Rouf highlighted that transactions worth USD $45 to $50 million are conducted through money changers annually in the country, compared to about $270 billion through the banking channel. He noted that despite the small fraction of transactions, fluctuations in the dollar rate by money changers have led to expatriates delaying remittances, contributing to a dollar crisis. The event was chaired by CID Chief and Additional IGP Muhammad Ali Mia, with the head of the Bangladesh Financial Intelligence Unit (BFIU) Md. Masud Biswas also addressing the attendees.
BB closing around 200 MFS accounts each day in Hundi crackdown
Says Governor
FE Team | Published: March 12, 2024 00:12:09
BB closing around 200 MFS accounts each day in Hundi crackdown
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