As mobile banking services, especially Bkash, Nagad have started gaining popularity in our country and the way this sub-service of the bank has surpassed the main banking service, its risk level have also reached its peak. It has been said several times to bring this service sector under strict control, warning about the dangers of mobile banking. There has been a detailed discussion on how this is possible. But Bangladesh Bank or concerned authorities do not seem to have given any importance to the matter.

Now CID knows that there is a money laundering incident using the country's mobile banking services. The CID also got hold of a lot of evidence and initially arrested 16 people involved in this occurrence.

If mobile banking was under strict control like the mainstream banking sector of the country and if they had ensured proper compliance while providing their mobile banking services, then such a huge amount of money could not be laundered and kept abroad for smuggling dollars without bringing them into the country. This amount of money used to come into the country legally and the country's foreign exchange reserves never fell below $45 billion. Not only that, it may be difficult to imagine the actual level of illegal dollar laundering using mobile banking services. Because CID has arrested only 16 people. But they have specific information that the number of such agents will be more than five thousand who are involved in illegal dollar smuggling or hundi using mobile banking services.

Even trying to understand how this huge amount of hundi or money laundering happened by misusing the country's mobile banking services, I was not very successful. Because the press did not get detailed information in this matter. Local print and electronic media published reports based on the little information that the CID disclosed. As a result, there is not much opportunity to know the details of the incident. It is only mentioned that three groups are involved in this financial irregularity and all of them are associated with one of the mobile banking service provider companies. Such hundi or international money laundering is not possible without the direct cooperation of the persons engaged in mobile banking service providers. Such persons are divided into different groups and the number of groups may be much more than three. Only a few of this group have been arrested.

There are two direct parties involved in this kind of hundi or international money laundering phenomenon, one party sends money from abroad and the other party laundering money from the country abroad. The second party are those who illegally laundered money abroad using this mobile banking service, it will be possible to know the real facts only if they can be identified. We firmly believe that even though CID keeps many details of the incident under wraps for the sake of investigation, they will be able to quickly identify the money launderers within the country and bring them under the law.

Needless to say, there is no reason to think that CID or any other agency arresting and punishing a few such persons involved in money laundering will stop or reduce such crimes in the country. In the name of mobile banking services, the way financial transactions have been made easy and seamless, such incidents will continue to increase in the coming days. One can open a mobile banking company account from any remote area of ​​the country by using NID and transact thousands of Tk in one day.

Such unregulated financial transactions are hard to imagine in the developed world, even in many developing countries. But in our country, this system is spreading in much speed. Whatever is cheap and unregulated is the most popular. All incidents happen through cheap popular systems. To stop Hundi or money laundering in the country, this cheap and easy mobile banking service should be strictly controlled first. If this mobile banking service, which is rapidly advancing in the country, is not properly controlled, then there will be no surprise in the near future, in addition to incidents like hundi, money laundering and money laundering abroad, there will be many more terrible financial frauds or transaction scams.

As technology is advancing and people are becoming dependent on technology very easily, online banking is the need of the time. But the banking sector of our country has not been able to advance and popularize their real online banking services. If banks could provide their customers with a limited range of transactions using mobile apps, then people would be able to do mobile banking transactions very easily from their bank accounts. As a result, there was no need to accept mobile banking services provided by third parties like Bkash or Nagad. Customers can feel safe if they transact through the bank, the chances of incidents like hundi, money laundering or money laundering abroad are very less.

Despite much discussion and criticism, banks are still the most trusted institution for people's financial transactions. Because bank is the only institution, which does business within the strict control of the central bank. Not only that, they also have to comply with many domestic and international laws and regulations. However, it is unfortunate that despite the national slogan of Digital Bangladesh, the banking sector of our country has not been able to advance their real online banking facilities. That's why mobile banking service provider companies have occupied this space very easily. Not only that, the way these mobile banking companies have made themselves popular, it is difficult to imagine the closure of this service provider, which has facilitated people's financial transactions and even the role it plays in settling business transactions in the country and this would not be a good option. Even bringing these companies under strict control or surveillance would be difficult. However, since these companies are involved in providing financial services, they have to be brought under direct control and there is no alternative.

First thing to make sure is that customers must have some bank account linked with their mobile banking account for direct money transfer or transaction. Without a bank account, transactions such as payment of purchase price of goods or services or payment of bills can be completed only with mobile banking account; but under no circumstances can transactions like direct money transfers be made. Basically there can be two types of accounts for availing mobile banking services. As such there will be no bank account obligation. These customers are only able to perform a limited range of services, especially transactions such as buying goods or paying bills.

There will be another type of account, those who have an account in any bank of the country and that account must be linked with mobile banking service or company account. Such customers can only make transactions like direct money transfer.

Note that, linking a bank account does not mean full access to that mobile banking. If a customer wants to take, then he can take it in a limited amount. However, linking this bank account means that whenever a customer wants to make a money transfer transaction, the system will automatically verify the valid bank account. Some more such regulatory measures must be adopted in the case of mobile banking service providers. Otherwise, incidents like hundi or money laundering, especially the incidents of money laundering abroad by misusing mobile banking services, will not decrease, on the contrary, they will continue to increase gradually.

Author: Nironjan Roy, Certified Anti-Money Laundering Specialist and Banker, Toronto, Canada