Outsourcing policy for banks on the cards

Bangladesh Bank (BB) has taken initiatives to formulate an outsourcing policy for the banks prioritising the issue of money laundering. The central bank is preparing the policy to bring the third party services into a frame, which would help the regulator to avert risks of fraudulent as well as screening the compliance of regulatory directives. Meanwhile, a draft of the policy has been sent to the chief executives of the banks seeking their opinions on it by May 15. The draft policy stipulates that the banks would not be allowed to hire third party for the core banking management including internal audit, control, compliance and treasury functions, know your customer (kyc), credit evaluation and sanctioning. Talking to BSS, Mahfuzur Rahman, spokesperson of the central bank, said the BB has taken the initiative for the first time in the country to protect the customers from any fraudulence of the third party.