BKB to use ICAB doc verification system to curb fake reporting

Bangladesh Krishi Bank (BKB) on Wednesday signed a memorandum of understanding (MoU) with the Institute of Chartered Accountants of Bangladesh (ICAB) to use its document verification system (DVS).
"From now on, the BKB will be able to authenticate the audit reports and audited financial statements of a loan applicant which will significantly reduce the risk of the bank," said BKB Managing Director Md Ismail Hossain.
The MoU was signed at ICAB office in the city's Karwan Bazar between the BKB managing director and ICAB President Md Shahadat Hossain.
ICAB CEO Shubashish Bose, BKB Deputy General Manager (Credit Division) Mohammad Moinul Islam, Board Secretary and Chief Public Relations Officer Kazi Mohammad Nozre Moin, among others, were present at the event.
Following the signing ceremony, BKB managing director said there was a time when it was very difficult for bankers to verify the ingenuity of the financial report of a company because there are instances of creating multiple reports by some companies to hide their respective financial health.
As the BKB has inked MoU with the ICAB, verification of audited reports will be easy which will as a result help the bank take cautious approach to avoid loan default, he said.
He also noted that due to different types of system upgrades like DVS, irregularities in the country's financial sector had already been in decline.
Meanwhile, ICAB president said, "Through the DVC (document verification code), the user can verify the audited company details in the DVS database where the same report can never be generated twice."
There have been allegations that some companies create multiple financial reports to serve different purposes including tax dodging, he said.
The DVS will certainly prevent such acts, thus ensuring good governance, accountability and transparency in the country's financial sector, he added.
However, the ICAB president said that the DVS would only verify the authenticity of the reports - not the quality; so, the bankers should carefully analyse the numbers in a report.

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