BB brings simplification in online transactions

FT ONLINE

The Bangladesh Bank (BB) has waived the formalities of online transaction authorisation form (OTAF) for online payments through international cards.

The central bank issued a new notice on Sunday over the matter after it came under intense criticism for introducing the OTAF.

“To bring further simplification in online transactions, it has been decided to waive OTAF formalities for online payments abroad through international cards,” according to the BB circular.

Authorities had introduced the online transaction authorisation form to stop illegitimate online payments to participate in gambling or stock trading.

In this context, Sunday's circular said, it is advised that authorised dealers (ADs) shall make necessary arrangements to guard against illegitimate online payments abroad through international cards from Bangladesh like payments for participating in online casino or gambling, trading in forex or stock exchanges, purchase of cryptocurrencies or lottery ticket, purchase of goods or services originated in Bangladesh.

ADs shall strictly observe Know Your Customer (KYC) and Anti Money Laundering (AML) or Counter Financing of Terrorism (CFT) standards, follow usual reporting routine to Bangladesh Bank, and ensure compliance of regulations concerning duties or taxes applicable against the transactions, the circular added.