Mohammed Lakiotullah has been elected Chairmen of Audit Committee of Bank Asia at a meeting of the Board of Directors of the Bank .Md Lakiotullah is an eminent and respected banker of the country, said a press release.

He has been contributing to the growth of the country’s experience for last 44. Md Lakiotullah was the founder Managing Director of Export Import Bank of Bangladesh (Exim) Limited for eight years. He was also former Managing Director of Jamuna Bank Md Lakiotullah acted as Vice Chairman of Bank Asia since 2010.

A BRAC Bank web site image shows online login process. All scheduled banks except HSBC and BRAC Bank failed to introduce two-step authentication for the use of credit and debit cards for online transactions by April 1 deadline set by Bangladesh Bank, said officials of the central bank.

All scheduled banks except HSBC and BRAC Bank failed to introduce two-step authentication for the use of credit and debit cards for online transactions by April 1 deadline set by Bangladesh Bank, said officials of the central bank.
On September 2, 2013, the BB issued a circular to all banks asking them to implement the new method ‘additional authentication’ or two-factor authentication for Card Not Present transactions by April 1 in a bid to tackle fraudulent acts.
As per the method the banks are supposed to issue a one-time password for every transaction to their clients through their mobile numbers and emails.
The transactions are supposed to be executed when the clients insert the one-time security code in the process.
Scheduled banks’ officials said that they showed reluctance to implement the system as the implement cost of the two-factor authentication was so high.
Besides, the banks will have to tie up with software companies to set up the technologies for the two-factor authentications after which they will make agreement with the international payment system operators like Visa and American Express.
Against the backdrop, some banks including United Commercial Bank, Standard Chartered Bank and National Bank have already applied to the central bank to extend the deadline to implement the two-tier authentication, the BB official said.
The Card Not Present transaction is referred to a transaction a consumer carries out without presenting his/her credit or debit card, he said.
‘For example, a consumer can make online payment for any purchase of product by using his/her credit or debit card’s number and password, without swiping the card through any machine,’ the official said.
This type of transaction is usually used in the e-commerce, he said.
Clients of the banks now use a fixed password in transaction through the CNP.
‘In the current system, fraud risk is high as such type of fixed password can be easily accessed by hackers,’ the official said.
He said that the central bank might give two to three months to the commercial banks to implement their two-factor authentication.
All Banks have to implement the method on mandatory basis to secure the transaction system with e-commerce.
UCBL first assistant vice-president Md Marufur Rahman said that every bank would have to set up excess control server by receiving cooperation from a software company to implement the two-tier authentication.
The implementation cost of the two-factor authentication is so high which caused delay for setting up the method in due time for the banks, he said.
He, however, said his bank would set up the two-factor authentication in the quickest possible time.
Southeast Bank card division head Md Abdus Sabur said his bank had failed to implement the system in accordance with the central bank deadline as their technology-supported company could not avail the facility.
Twenty-two banks including Southeast Bank is now receiving technology support from Information and Technology Consultancy Ltd, he said.
Not only Southeast Bank but also 22 banks failed to implement the two-factor authentication in due time, Sabur said.
He hoped that his bank would complete the required measures to implement the two-factor authentication within this month, he said.

Bangladesh Bank has decided to fine the delinquent banks that have failed to make payments to foreign parties against letters of credit (LCs), a top BB official said.
“It is reported internationally when a bank fails to pay against an LC on maturity. We have no option but to fine these delinquent banks,” Abu Hena Mohammad Razee Hassan, deputy governor of BB, told The Daily Star yesterday.
The wilful default by a few banks is set to cast a bad light against the country's entire banking sector, negating the benefits of Bangladesh coming out of the grey list of Financial Action Task Force, the global money laundering and terrorist financing watchdog.
The finance minister and central bankers said the country will not have to bear the extra cost in LC confirmation charges it had to count when it was on the grey list.
The LC confirmation charge is imposed when an exporter's (foreign party) bank wants security in receiving payments under the LC.
Accordingly, an importer's (local party) bank approaches international banks such as HSBC, Standard Chartered or Citibank NA, to provide guarantee to the exporter's bank about the payments.

And, these banks impose a charge, which is called LC or ad confirmation fee. This is also called a 'risk fee' taken by the confirming bank.
The LC confirmation charge depends on some factors, mainly the country risk and the reputation and strength of the issuing bank. It is also called commitment fee and varies from bank to bank.
Presently, banks charge 1.5 percent to 2 percent of LC value as confirmation fee, meaning a local importer has to pay $2 million to another bank as LC confirmation fee against an import of $100 million worth of goods.
“It should be 0.5 percent of LC value, especially after Bangladesh's good score in FATF assessment,” said the BB deputy governor, adding that some banks' failure to pay against LCs has shrunk local banks' bargaining capacity to reduce LC confirmation fees.
Some other BB officials said Bangladesh's credit rating might also deteriorate for this failure.

The World Bank will provide a credit facility worth $210 million to Bangladesh to help build modern food storage systems and strengthen distribution.
Under a deal signed between the two parties yesterday, the government will construct the food storage system that will be able of feed 10 million people under a new project.
The facility will be provided for a term of 40 years, including a 10-year grace period, and carries a service charge of 0.75 percent.
The Modern Food Storage Facilities Project will construct steel silos with a total storage capacity of 535,500 tonnes of rice.
It will also support the distribution of smaller household silos to 500,000 households in the disaster-prone coastal areas.
“Bangladesh faces floods and cyclones in almost every three years, and climate change could increase the frequency and intensity of these extreme-weather events,” said Christine Kimes, acting country head of World Bank Bangladesh.

“This modern food storage system combined with an effective distribution system will help ensure food security immediately after a natural disaster.”
“The project will reduce the vulnerability of people living in natural disaster-prone areas and help Bangladesh build a stock of food to meet emergencies,” Kimes said.
The modern steel silos will be able to store food grains for up to three years while retaining the nutritional quality of the rice through computerised control of humidity and temperature, World Bank said in a statement yesterday.
“The steel rice and wheat silos would enhance shelf life from seven months to three years. This would protect the government from having to replenish rice and wheat stocks in every seven months with huge costs,” said Arastoo Khan, additional secretary of the Economic Relations Division.
“So the government would have greater manoeuvrability in management and distribution of cereal stock.”
The project will also support the improvement and modernisation of the monitoring and management system of food stocks in Bangladesh, as well as the development of a food policy research programme and provide project management support, supervision and technical assistance and training.

 Bank Asia organised a workshop on ‘Shariah Compliance in Islamic Banking’ for its 32 officials from 5 Islamic Windows and Islamic Banking Division at the bank’s Institute for Training and Development on Saturday.