Bangladesh Bank has requested the Banking Division to ask the law enforcers for taking legal action against the closed-down Mulit-Level Marketing (MLM) Company Revnex which was found doing ‘illegal banking’ in different name and ‘deceiving’ people .

“The Revnex (BD) is now running under the name of ‘Simantu Multipurpose Cooperative Society (SMCS)’ and cheating the people by making attractive offers which are not legal,” said a recent report of Bangladesh Bank.

General Manager of Foreign Exchange Inspection and Vigilance Department of Central Bank, Saiful Islam sent four pages inspection report to the secretary of the Finance Ministry’s Banking Division Shafiqur Rahman Patwari.

The report suggested the authority concerned should go for action under the Bank Company Act 1991 using its provision of 41.

The finance minister AMA Muhith, last week, said: “Not only Destiny but other MLM companies will also be brought under proposed direct sales law.”

The government wants to end MLM business in Bangladesh, aimed at stopping financial fraudulences in the name of trading and money-making, he added.

According to the BB report, Revnex shut down operation in October last year after their accounts in two private commercial banks –Prime Bank Limited (PBL) and Dutch-Bengal Limited (DBBL)- were frozen.

Revnex resumed its operation in the name of Simantu Multipurpose Cooperative Society (SMCS) by opening offices at Banani and Mohakhali in the city.

The central bank’s report said: “The SMCS illegally transferred its money stuck in the frozen accounts in two commercial banks through SA Paribahan.”

According to the report, a Revnex official withdrew Tk 310 million from PBL and DBBL. The shut-down Revnex (BD) deposited Tk 519.7 million in beginning of 2011. The Bangladesh Bank report said Revnex is now offering 213 per cent profit against six-month deposit of Tk 5 million.

The current number of Revnex clients stands at 0.3 million and deposit reached Tk 1500 million, although the company was registered in the Register for Joint Stock Companies and Firms (RJSCF) with condition that it would not do business more than Tk 500 million per year, the report mentioned.

According to the report, chairman and managing director of Revnex ( BD) Pintu Biswas told the inspection team that he would go to Bangladesh Bank for giving Revnex information rather than talking over phone .

Bangladesh Financial Intelligence Unit (BFIU) of the Bangladesh Bank is now looking into the Revnex activities, the report said.

Last November, the government formed a three-member committee to investigate into the ‘illegal business’ of Revnex which was accused of cheating the people.

The Daily Sun/Bangladesh/ 16th April 2012