BFIU moves against moneychangers

Bangladesh Financial Intelligence Unit (BFIU) moves to take stern action against moneychangers involved allegedly in suspicious dealings, including money laundering, officials say, as drives are on to discipline forex market.
Under the move, the intelligence agency of the country's financial sector has decided to hold a trilateral meeting among the leaders of Moneychangers' Association of Bangladesh, officials concerned of the Bangladesh Bank (BB) and members of law-enforcing agencies shortly.
"We want to promote business of genuine moneychangers through curbing suspicious activities strongly," a senior official familiar with the developments told the FE Tuesday.
In conjunction with other law-enforcing agencies the BFIU started on-site inspections into various suspected moneychangers at different places in the capital recently to dig out their alleged illegal activities, he explains.
"We want to develop a better coordination system among the authorities concerned for curbing illegal 'hundi' system," the official says while replying a query.
He also informs that the BFIU has already taken different measures to prevent money laundering as well as terrorist financing to ensure stability and integrity of the country's financial system.
Besides, the BFIU has already sought information on accounts and transactions of 27 moneychangers from banks to sift out if any of them is involved in money laundering through illicit fund transfer.
The moneychangers whose bank account details were sought by the BFIU are: Nivedita Money Exchange, City Monetary Exchange, Bakaul Money Exchange, Mondial Money Exchange, Nobils Moneychanger, Himalaya Dollar Moneychanger, Capital Moneychanger, Metro Moneychanger, Dependent Moneychanger, Dhaka Moneychanger, Lord's Money Exchanger, Glory Money Exchange, DN Moneychanger, Angkan Money Exchange, Vijay Money Exchange, Binimoy Money Exchange, Buriganga Money Exchange, Cumilla Money Exchange, ASN Moneychanger, BKB Money Exchange, Kaya Moneychanger, Alpha Money Exchange, Crystal Money Exchange, The Liaison Money Exchange, Fayez Money Exchange, Vijay Interchange and Uttara Moneychanger.
They will take next course of action after examining the bank transactions of these moneychangers, according to the official.
Earlier, the central bank had suspended five licences and issued show-cause notices against 42 moneychangers for allegedly violating the existing foreign-exchange rules and regulations.
And nine other unauthorized moneychangers' operations are going to be closed on the same grounds.
The BB had taken the decisions on the basis of its special drive at moneychanger houses, which was launched on July 27 last, just a day after the cash dollar price hit Tk 112 on the kerb market.
Under the existing provisions, a moneychanger is allowed to hold a maximum of $25,000 at the close of each business day.
Cash beyond this limit will have to be deposited into their respective bank's foreign-currency account.
The balance of that account must not exceed $50,000 at any point in time.
The central bank has already taken various measures that include setting a spread rate between selling and buying of cash dollar by moneychangers at maximum Tk 1.50 to ensure market discipline.
As per the latest BB directive, the moneychangers sold the cash dollar at maximum Tk 109.50 Tuesday on kerb market in the capital while they purchased the greenback offering Tk 108.00.
Currently, 235 money exchanges are doing business with the permission of the central bank. But there are more than 700 moneychangers freewheeling on the money market.
Meanwhile, the central bank continues to provide its foreign-currency support to scheduled banks for managing the forex-market volatility. Under the ongoing moves, the central bank sold $70 million more directly to five banks on Tuesday to help them meet a growing demand for the greenback as global price rises have led to import-cost escalation with its resultant pressures on reserves of Bangladesh, as also of many other countries.
The BB has so far injected $1.99 billion from the reserves directly into commercial banks as liquidity support for import payments in the current fiscal year (FY), 2022-23.
In FY22, the central bank sold $7.62 billion from the reserves to the banks for the same purpose.

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