Bangladesh Bank (BB) has asked all scheduled banks to introduce advance technology to help central bank scan daily transactions in the commercial banks. According to BB, the latest move of the central bank is aimed at identifying suspicious transactions in order to check money laundering and terrorist financing. 

“The objective is to monitor all monetary transactions originating from alternate delivery channels such as ATM, KIOSKS, POS, E-Commerce, Internet Banking and Mobile Banking offered by the banks,” reads a circular issued last week by the BB’s Department of Currency Management and Payment Systems.

Speaking in details, an official of the concerned department said a single switch that would be connected to the National Payment Switch (NPS) could allow the BB headquarters to see all the transaction reports instantly.

According to the circular, the banks will need to be en-link with the NPS through which the central bank could monitor all monetary transactions originating from alternate delivery channels.

The BB suggested that the banks develop child switch at respective bank headquarters which would connect banks to the NPS, which would act as mother switch.

The circular reads: “Banks those have their own transaction switching system or share others’ system or planning to install their own system are advised to take necessary preparation to build up a single interface with the NPS to comply with the BB directives.”

The NPS will support transactions made through cards or account number (direct debit or credit), clear and settle electronic transactions through the settlement accounts of all the scheduled banks maintained with the central bank, it reads.

The Independent/Bangladesh/ 17th April 2012