The Ministry of Finance has asked the central bank to take necessary action against Destiny-2000 Ltd, a Multi-Level Marketing (MLM) company, for its illegal banking activities.

The Banking Division of finance ministry on Tuesday sent a letter to Bangladesh Bank authorities directing it to take action against the illegal activities of Destiny.

The directive was issued following an approval of necessary actions against Destiny last week by former commerce minister Faruk Khan. The approval was followed by sending letters to home secretary, banking division secretary, Bangladesh Bank governor, SEC chairman and Registrar of Joint Stock Companies and Firms requesting them to take legal action against the controversial MLM company.

Commerce ministry issued the letter on the basis of a complain by one Khrushid Ahmed Khan, a resident of Chittagong.

“The Banking Division sent a letter to the BB Governor Aitur Rahman for proper action”, a senior BB official told daily sun on Wednesday. The letter bore the signature of Deputy Secretary to the Banking Division M Rezanul Huda.

Banking division sources said the money laundering department of BB has already completed its investigation against the alleged money laundering activities of Destiny in response to few prior complaints.

The concerned department has already submitted its report to the higher BB authorities. But BB is yet to take any legal action against Destiny. Sources said the government high-ups have barred BB from taking any legal action against the MLM company.

As per the allegation of Khrushid Ahmed Khan of Chittagong, Destiny sold its shares to earn around Tk 14 billion without enlisting it with stock market and keeping the stock market authorities outside the whole process.

In the allegation, he feared that Destiny may disappear from Dhaka and other districts of the country in 2014, causing huge financial losses to people. The present amount of capital of Destiny has reached Tk 500 billion and its total number of agents 3.8 million.

Destiny offers four per cent interest every month against any deposition of Tk 100,000 with it by a client. At the same time, if any of Destiny agents can convince a client to deposit Tk 1,000 or more, the agent will get 25 per cent interest. The whole process is illegal as per BB rules.

Destiny has allegedly been involved with Hundi business through its agents in the USA, Canada, Italy and the Middle Eastern countries. Allegedly it has so far transacted Tk 8-10 billion through Hundi.

Earlier, the Ministry of Commerce has asked the Registrar of Joint Stock Companies and Firms to cancel registration of 45 MLM firms, including Destiny-2000 Ltd, for using false addresses.

Source: The Daily Sun/ Bangladesh/ 8th Dec 2011