Hundi trading via mobile banking is booming now. Hundi traders are constantly adopting new strategies to send money into the country from abroad. They have now opted for mobile banking to illegally bring money into the country. At least 5,000 agents from various mobile financial services (MFS), including Bikash, are involved in the hundi cycle. Thanks to them, about 75 thousand rupees crore have been smuggled in the past year.
While the financial transactions in mobile banking have increased, the remittance flow of the banks that have this service has also decreased. This means that the money raised through mobile banking does not come to the banking channel. It is handled directly through Hundi. Mobile banking has seen a massive collapse in remittances due to the increase in hundi trading. The government loses revenue of hundreds of millions of rupees. As a result, the mobile banking service launched as part of Digital Bangladesh is now in the pipeline.
Hundi Syndicate members make transfers through BKash services. As a result, remittances from abroad quickly reach the relatives of ex-pats. Hundi’s syndicate operates across the country via mobile banking. As a result, the flow of money in the banking sector has decreased. This information emerged in a recent research report from the Bangladesh Institute of Bank Management (BIBM). Meanwhile, the Police Criminal Investigation Department (CID) has arrested seven mobile banking in cases of illegal transactions and money laundering. Several development agents were arrested in raids in different districts of the country.
The Bangladesh Financial Intelligence Unit (BFIU) has checked the information of nearly 4 lakh agents of Bikash, a mobile financial services company, to identify transactions through Hundi.
Taking advantage of the dollar crisis, several mobile financial services (MFS) operators are directly involved in the digital hundi business. The SIM cards of about 300 agents of MFS operator Bikash Chittagong region have been blocked because of this complaint. In addition, the transaction activities of a number of distributors are also suspended. Some MFS operators have even stopped their development activities for fear of being blocked.
According to the related sources, Bangladesh Bank, the financial sector regulator, has also taken several initiatives to prevent the manipulation of the dollar. After that, BFIU went into the field to identify the dollar manipulation cycle. BFIU blames digital hundi for dollar market volatility Recently, the organization informed the embassies about this via a letter.
According to sources, the money transferred through digital hundi is not deposited in the country’s foreign exchange reserves. As a result, the country has been deprived of forex reserves. On the other hand, the demand for dollars is increasing by buying dollars off the curb for investment, hundi, betting, crypto trading and other criminal activities in online forex trading.