Serial bank scamsters’ days might be numbered
Scamsters' errant ways might soon be checked given a database the central bank is preparing.
Banks, non-bank financial institutions and mobile financial service providers will input information on a central database. If any fraudulent activity is found against a client, lenders will attach it to the database.
Each lender will verify the information of every client once he/she opens an account with the entity.
"The database will be operated like the credit information bureau (CIB) storage of the central bank," said a Bangladesh Bank official with strong knowledge of the matter.
The central bank has already started work for the database, which will be live within this year, he said.
Lenders will use the information of the database when they will fill up the KYC (know-your-customer) form of clients.
Clients will a get a rating based on their previous banking record at the database.
A poor transaction ceiling will be fixed for a client if he/she was involved in fraudulent activities previously. In some cases, banks will not open any account in favour of a client if severe forgery can be found.
The CIB has been storing the nature of loans taken by clients permanently. Lenders will verify the credit status before giving any fresh loans to a borrower.
The forgers can now get banking services from other lenders even after committing fraud with a bank, according to a central bank paper.
Lenders cannot get any information of such forgery in the absence of a central database.
"Such forgers are dangerous for the entire banking sector. They frequently forge the cheque book and embezzle deposit of clients," the BB paper said.
The database will store clients' details such as their parents' name, date of birth, national identity number, tax identification number and present and permanent address.
"Lenders will also input the description of forgery cases in detail at the database. If any client earlier got punishment for forgery, lenders will have to mention it as well."
Along with new customers, the banking record of the existing clients will also be assessed to fix their risk rating.
This will help secure financial transactions more in the banking sector, the official said.
The name of the software, which will be used for storage of the information, is Corporate Memory Management System.
The central bank's Information Systems Development and Support Department are working on it.
Operational module procedure and regulations will be prepared when the software will be ready for operation.
The central bank will take opinion from stakeholders on how to operate it in an efficient manner before launching it formally.
The National Integrity Strategy Implementation related committee of the central bank will be running the software.
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