Economy
Hundi Business yet unstoppable thru bKash
The illegal hundi business has been thriving in recent years through the use of mobile banking, raising concerns. Amidst this backdrop, the Noakhali Police’s Crime Investigation Division (CID) has apprehended two individuals, Shahadat Hossain (23) and Bolai Chandra Das (26), including a bKash agent, for their involvement in hundi operations in the Chatkhil area of Noakhali. The arrested individuals are reported to have connections with hundi operators in various countries, including Dubai, Saudi Arabia, Singapore, and Hong Kong. These details have been obtained from reliable sources.
According to sources, several bKash agents have previously been arrested on allegations of involvement in illicit hundi businesses. In September of last year (2022), a bKash agent named Md. Abul Hasan was apprehended by the CID in Shahjadpur, the capital city from Dhaka. He was found to be engaged in illegal hundi activities using his bKash agent position. In January 2018, eight bKash agents were also arrested by the CID from various districts, including Rajshahi, Pabna, and Mymensingh.
According to sources from Bangladesh Financial Intelligence Unit (BFIU), 31 bKash agents suspected of involvement in hundi activities have had their accounts frozen and their agent contracts terminated. Additionally, the organization is currently scrutinizing reports of 34 transactions related to hundi. The BFIU has forwarded 11 intelligence reports on hundi and trade-based money laundering to the relevant law enforcement agencies for necessary actions.
In addition, reports on two suspicious transactions related to hundi have been forwarded to the respective law enforcement agencies for implementation. Simultaneously, the BFIU has recommended taking measures against 51 websites, 12 social media pages, and 15 apps involved in illegal forex, betting, and cryptocurrency transactions. It has been learned that 2intelligence reports on currency smuggling and trade misinvoicing have been sent to the CID. Furthermore, 9 suspicious reports on the same matter are currently under review.
The BFIU has revealed that a total of 218 remittances, amounting to over a billion taka, have entered the country through legitimate channels following moral scrutiny and unblocking. According to the information from Financial Intelligence, these accounts have received remittances totaling 1 crore 1 lakh 86 thousand 391 taka through valid channels.
Due to the vigilance of the BFIU in mobile banking, the image of hundi business has been tarnished in agent banking. Currently, the BFIU has conducted an analysis of certain accounts, where the existence of hundi transactions has been identified by the institution.
It was also known, a high-ranking official of the BFIU informed Orthosongbad that Bangladesh Financial Intelligence is working towards shutting down hundi operations, cryptocurrency, and gambling sites.
Additionally, Shamshuddin Haider Dalim, a communication officer at bKash, said that there is no opportunity to engage in hundi business through bKash. bKash operates only within Bangladesh and does not work outside the country.
Agents are our business partners. They are not only agents of bKash but also agents of other operators. Agents primarily work for 4-5 MFS companies. It wouldn’t be accurate to simply label them as bKash agents because it is not possible to know who their actual agents are. In addition, many agents are unaware that it involves hundi transactions. The individuals arrested by the CID are MFS agents. Due to bKash being a well-known brand, they are referred to as bKash agents.
He further states that the measures taken in various illegal transactions are based on the information we provide. bKash regularly generates reports on suspicious transactions based on our own initiatives and submits them to the Bangladesh Bank and BFIU (Bangladesh Financial Intelligence Unit). However, the investigation is conducted based on the information we provide.
Shamshuddin Haider Dalim says that now there are significant transactions taking place through bKash. ‘Now, do I want people to engage in illegal activities using my platform?’ In Bangladesh, there are around 10 lakh agents who are agents of both bKash and other operators. Among them, we inform the Bangladesh Bank and BFIU about any suspicious transaction based on our provided information. We take action against those who are found guilty. We have also canceled the agency of several such agents. We do this in our own interest and as part of regular practice.
bKash has recently entered into a brand partnership agreement with the Argentine Football Association (AFA). As a result, the mobile financial service provider from Bangladesh has become a sponsor of the Argentine football team. The official announcement of this collaboration has also been made on the AFA website. Recognizing the immense popularity of the Argentine football team in the Asian region, the marketing department of the association has taken steps to expand their brand presence in this region by partnering with bKash. While it is known that bKash will sponsor the Argentine football team, further details about their collaboration with Lionel Messi’s team have not been disclosed. Additionally, the sponsorship of a Bangladeshi team by a foreign entity has sparked debate amidst the financial crisis faced by the national football team of Bangladesh.
During the eleventh month of the current fiscal year, the country’s foreign currency reserves have fallen below $19 billion for the first time. After paying off some import bills, the reserves have now stood at $18.26 billion on Sunday.
According to the International Monetary Fund (IMF), as of May 8, the total foreign currency reserves of the country were $19.82 billion.
Mohammad Mezbauul Haque, the spokesperson of Bangladesh Bank, informed that through the Asian Clearing Union (ACU), the central bank has paid off import bills totaling $1.63 billion over the past two months.
However, Bangladesh Bank maintains that after paying off the import bills, the foreign currency reserves now stand at $23.71 billion.
According to the Central Bank’s accounts, the reserves were $25.27 billion on May 8.
The Dhaka Stock Exchange (DSE) and the DSE Brokers Association (DBA) have expressed gratitude towards Prime Minister Sheikh Hasina for her directive to list government companies in the capital market, a move hailed as timely and positive.
The directive was issued during the recent meeting of the Executive Committee of the National Economic Council (Ecnec) last Thursday.
Dr. Hafiz Muhammad Hasan Babu, Chairman of DSE, described the directive as a significant step towards enhancing the dynamics of the capital market. He emphasized that besides invigorating the capital market, this move would also attract foreign investment and promote sustainable development.
Despite previous efforts, government institutions had not been listed in the stock exchange, according to a notification issued by the DSE. The Prime Minister’s directive is seen as a pivotal step towards revitalizing and expanding the economy.
Dr. Babu further remarked, “The listing of reputable companies in the capital market, as directed by the Prime Minister, will greatly benefit the country’s economy. It will also enhance investor confidence.”
Similarly, the DBA released a notification applauding the Prime Minister’s directive, terming it as positive and timely for the capital market.
Saiful Islam, President of DBA, expressed optimism about the directive’s potential to accelerate the country’s capital market and overall economy. He pledged support to relevant government departments and regulatory bodies in implementing the directive, ensuring its positive impact on the economy, including the capital market.
India has expressed interest in financing Bangladesh’s Teesta project, announced Foreign Minister Hasan Mahmud. Speaking to reporters after a meeting with Indian Foreign Secretary Vinay Mohan Kwatra, Mahmud stressed the importance of aligning the project with Bangladesh’s needs. He confirmed discussions on the Teesta issue during the meeting. Mahmud also affirmed Prime Minister Sheikh Hasina’s upcoming visit to New Delhi, indicating that the finalization of the date would depend on the formation of the new Indian government following ongoing elections.
Meanwhile, the IMF has approved a $1.15 billion staff-level loan for Bangladesh in its third tranche. Mahmud noted the ongoing elections in India and the subsequent formation of the new government as factors influencing the scheduling of PM Hasina’s visit.
When asked about the sequence of visits to India and China, Mahmud suggested Delhi’s geographical proximity to Bangladesh. Diplomatic sources suggest PM Hasina’s visit to India is planned for early July, following India’s elections.
Pre-election surveys indicate strong prospects for Indian Prime Minister Narendra Modi’s re-election. Modi previously congratulated PM Hasina on her electoral victory in January, expressing optimism about strengthening ties between the two nations.
The last bilateral engagement between the prime ministers occurred during the G-20 Leaders Summit in September 2023. Modi is expected to invite South Asian and BIMSTEC leaders to his swearing-in ceremony, fostering regional cooperation.
Addressing border killings, Mahmud emphasized the government’s commitment to ending such incidents and promoting the use of non-lethal weapons by border forces. Discussions also covered enhancing physical and people-to-people connectivity, including cooperation with India to import hydropower from Nepal and Bhutan through India. Mahmud highlighted the need to further ease visa restrictions to strengthen people-to-people relations.
