BB tightens security steps, puts cap on transaction amount
Bangladesh Bank on Sunday asked the banks not to allow money transactions through mobile banking without the clients’ mobile account. The BB also tightened the security steps for mobile banking, asking the banks to implement fully ‘know your client’ system by December and imposing a cap on money transactions.
The BB move came following controversies over embezzlement, money laundering and other anomalies through the mobile banking or mobile financial services.
The central bank issued a circular to managing directors and chief executive officers of all banks saying that an agent of a bank’s MFS had to ensure that the client, who is eager to transact with the MFS, must maintain a mobile account before making any transaction.
The BB warned that it would cancel the agency-ship of an MFS agent instantly if the central bank gets any types of anomalies against the agent when it makes transaction.
A client can open a mobile account with a bank, which received no-objection certificate to run the MFS from the BB, through his or her mobile phone. The bank concerned signs an agreement with the mobile operator companies to operate its MFS.
The BB said that the banks could not make any kinds of transaction with the MFS but receive deposits without verifying for a client’s KYC form.
A client describes his or her personal and business details with the KYC form. The KYC form is usually used when a client opens new account with any bank.
Besides, a client can not make any transaction with the MFS without approval of his or her application for opening account by a bank concerned, the BB circular said.
The BB, however, said that the banks would have to apply the directive from December 2013.
An agent of a bank’s MFS has to ensure that the client, who is eager to transact with the MFS, maintains a mobile account before making any transaction.
The BB warned that it would cancel the agency-ship of a MFS agent instantly if the central bank gets any types of anomalies against the agent when it makes transaction.
The BB circular said embezzlement and anomalies had recently occurred with the MFS, as the banks did not follow the MFS guideline of the central bank.
The BB received allegations that some clients, who have not opened mobile account, usually make their transaction with the agent account or other clients’ account, the circular said.
‘Such type of transactions is risky and violated the MFS guidelines. Under the circumstances, the BB issued the new directives for banks so that the embezzlement and anomalies will be decreased,’ the circular said.
The agents of the MFS will not be able to make transaction like cash-in and cash-out among themselves.
An agent can deposit money highest five times with its agent account in a day, the BB circular said.
A client of the MFS will be able to transfer deposit highest five times in a day, twenty times in a month and he or she can receive money highest three times in a day, and ten times in a month.
A client of the MFS will be able to transfer deposit or receive cash highest Tk 25,000 in a day and Tk 1,50,000 in a month, the circular said.
The BB has limited the person-to-person transaction to maximum Tk 10,000 in a day and Tk 25,000 in a month. The person-to-person transaction means a particular person makes transaction with aother selected person.
The BB circular said that the new transaction limit would not be applicable for the MFS transactions — person to bank, bank to person, person to government and government to person.
A BB official told New Age on Sunday that the central bank had recently received a number of allegations from the clients that their (clients) money was embezzled whey they made transactions with the MFS.
The clients alleged that some agents were involved in embezzling the clients’ deposits, he said.
Besides, the incidents of money laundering have increased with the MFS as the banks neglected to fill up the clients’ KYC form, he said.
For these reasons, the BB tightened the MFS guideline to check swindlings, he said.
-With New Age input
