A special seven-member investigative committee has already been formed
Many financial institutions (FIs) continue to conduct their financial transactions using different names and even the word “bank” at the end.
Surprisingly, a large part of them conduct these financial activities without any authorization and in many cases take money from the people and disappear.
This time, the Bangladesh Bank (BB) will open a strict investigation against these unregistered institutions.
The court also ordered the cessation of these activities and, following directives issued in this regard, the central bank authorities recently formed a committee of seven members and referred it to the High Court.
Kazi Sayedur Rahman, deputy governor of the Bank of Bangladesh, was appointed chairman of the committee.
The other members are the executive director of the central bank Serajul Islam, general manager of the banking inspection department-1 Jiban Krishno Roy, general manager of the off-site supervision department Anwarul Islam, general manager of the financial institutions and markets department Zulkar Nayn , General Director of the Department of Banking Regulation and Policy Maksuda Begum and Deputy Director General of the Department of Banking Inspection-4 Munir Ahmed Chowdhury.
Asked about this, Bangladesh Bank Committee spokesman Serajul Islam said: “The committee has already been formed by court order. The committee will soon begin to work as directed.
“The task of this committee will be to stop the activities of these illegal and unlicensed organizations and to take strict legal action against them,” he added.
During the investigation, if the existence of an unauthorized bank or non-bank financial institution is found, the respondents are asked to immediately close the offices of these entities and to take legal action against those responsible with the help from the local administration. , said the court in its order.
He also asked the Microcredit Regulatory Authority (ARM) to submit a list of local money lenders who lend money by mortgaging real estate or real estate to this court within 45 days.
According to central bank sources, the committee will look into the whole issue and submit a report to the court.
They may recommend action under section 109 of the Bank Company Act, 1991.
There is a provision of imprisonment for up to seven years and a fine of Tk 10 lakh for providing banking services without approval or license for banking services.
If this committee can implement the guidelines, illegal organizations operating in different parts of the country can be arrested.