BFIU seeks bank details of 26 money changers

The Bangladesh Financial Intelligence Unit (BFIU) – operating under the central bank – has asked banks to provide detailed information on accounts and transactions of 26 money changers.

The intelligence agency, responsible for curbing money laundering and terrorist financing, directed banks on Monday to provide the information within Tuesday.

The 26 money changers are – Nibedita Money Exchange; City Monetary exchange; Bakaul Money Exchange; Mondial Money Exchange; Nabils Money Changer;  Himaloy Dollar Money Changer; Capital Money Changer; Metro Money Changer; Dependent Money Changer; Dhaka Money Changer; Lords money changer; Glory money changer; DN Money Changer; Agkon Money Exchange; Bijoy money exchange; Binimoy Money Exchange; Buriganga Money Exchange;  Foyez Money Exchange; Cumilla Money Exchange; ASN Money Changer; BKB Money Exchange; Keya Money Changer;  Alfa Money Exchange; Cristal Money Exchange; The Liaison Money Exchange and Uttara Money Changer.

Recently, the price of USD hit record high at Tk 118 to Tk 120 each in the kerb market, which prompted the Bangladesh Bank to conduct inspection into the money changers’ operations.

On July 27, ten inspection teams of the central bank started visiting money changers in Dhaka City. On August 2, the Bangladesh Bank suspended the licenses of five money changers including Ankon Money Changer, Foyez Money Changer and Bismillah Money Changer.

The banking regulator later sent show-cause notices to 42 others for irregularities – such as keeping USD beyond the regulated limit.

Currently, 235 licensed money changers and around 1000 authorised dealers’ branches of banks are permitted to sell and buy foreign currency to travelers. However, around 600 money changers are buying and selling foreign currency illegally.

As per the central bank rules, a money changer is permitted to hold a maximum of $25,000 at the close of each business day. Bangladesh Bank officials said the cash beyond this limit would have to be deposited in their respective bank’s foreign currency account.

The balance of that account must not exceed $50,000 at any point in time, say central bank officials.

The baking regulator inspection team found that the money changers were maintaining several books for transactions of foreign currency.

Also, in most of the cases, the money changers are keeping USD beyond the regulated limit.

On Monday, the USD rate stood at Tk 110 to Tk 112 in the kerb market. However, the inter-bank exchange rate was at Tk 95 per USD the same day. The central bank sold $67 million to banks at that rate on Monday to keep the forex market stable.