7,000 suspicious accounts put bKash under Bangladesh Bank scrutiny

Bangladesh Bank has sought an explanation from bKash over more than 7,000 suspicious accounts flagged for possible violations of customer verification rules, warning that the mobile financial services provider could face penalties.

In a letter issued on 3 November under Section 37 of the Payment and Settlement Act, 2024, the central bank asked the mobile financial services provider why it should not be fined for breaching Know Your Customer (KYC) guidelines.

Central bank officials said some accounts listed holders' ages as between 100 and 150 years, while many showed unusually high transaction volumes despite questionable identity information.

They said keeping such accounts active violated Bangladesh Financial Intelligence Unit (BFIU) guidelines, which apply to banks, non-bank financial institutions and payment service providers.

Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan said seeking an explanation was the first step and no penalty had yet been imposed. Further action would depend on the company's response.

He added that illegal transactions, online gambling, betting and cryptocurrency trading through mobile financial services were increasing, often involving fake accounts.

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However, bKash said all accounts were opened through electronic or paper-based KYC procedures in line with regulatory requirements.

Shamsuddin Haider Dalim, head of corporate communications at bKash, said many accounts showing holders aged 100 or above resulted from incorrect birth dates in National Identity (NID) records.

He said the accounts concerned had been placed under Enhanced Due Diligence (EDD), with necessary risk mitigation measures taken. Customers had also been asked to correct their birth dates in the Election Commission database.

bKash has 8.5 crore registered accounts, including 4.20 crore active ones.

Source: Daily Star