The Bangladesh Financial Intelligence Unit (BFIU) yesterday instructed mobile financial service (MFS) providers to inform it of suspicious transactions with a view to reining in “digital hundi” ahead of Eid-ul-Fitr.
The MFS providers will have to apprise of the agents who have made 90 percent or higher cash-ins compared to cash-outs through their accounts since January 1 this year, according to a BFIU letter sent to all MFS providers.
They will also have to notify about the agents’ MFS accounts which have conducted four or more cash-ins per minute.
Moreover, agents making a significant amount of cash-ins at the dead of night (from 2:00am to 5:00am) have to be reported to the agency.
The MFS providers must also let the BFIU know of the individual account-holders which reached the ceiling for person-to-person transactions set by the Bangladesh Bank.
The central bank has asked to provide the information within three working days.
The nexus of money launderers could be active ahead of Eid-ul-Fitr, the Islamic festival scheduled to be held on the first week of next month, which will surely have a negative impact on the inflow of remittance, said a BFIU official familiar with the matter.
According to an investigation carried out by the central bank, digital hundi was responsible for a steep decline in remittance last year.
A vested quarter earlier used some mobile apps and computer-based systems to run the digital hundi, an illegal process of transferring money from one nation to another.
The central bank waged a crackdown on the group on discovering it, subsequently helping remittances go up this fiscal year.