Multi-Level Marketing (MLM) companies are beyond jurisdiction of Bangladesh Bank, hence it cannot control entities like Destiny 2000 Ltd, said the officials of the central bank.

A senior official said BRPD division of Bangladesh Bank, last week, informed the banking division secretary Shafiqur Rahman Patwari about the central bank’s position regarding MLM businesses.

He further said the division would await amendment to the existing Bank Company Act for taking stern actions against MLM companies.

In a letter, the Banking Regulations and Policy Department (BRPD) said the Directorate of Cooperatives can take legal actions against MLM companies who are registered with the directorate.

BRPD letter singed by its General Manager KM Abdul Wadud also read the central bank would take legal actions against MLM companies like Destiny if the authority concerned directed the government-formed committee to amend the Cooperative Societies Act 2001 and the Bank Company Act 1991.

Currently, the amendment processes to these Acts are going on.

In March this year, the government formed a seven–member committee for preparing amendment recommendations to the Bank Company Act 1991 to establish good governance in the sector.

The committee will submit its recommendations to the banking division in two months.

Meanwhile, a Bangladesh Bank report revealed that Destiny Group directors transferred almost all of the money soon after the clients deposited them to the directors’ personal bank accounts.

The report said that such withdrawals were indicative of money laundering, an offence which may lead to seven years imprisonment.

The Financial Intelligence Unit of the central bank sent an interim report on bank transactions of Destiny Group to the finance ministry last month, the central bank and finance ministry sources said.

The group comprises three major concerns- Destiny 2000 Ltd, Destiny Multipurpose Cooperative Society Ltd and Destiny Tree Plantation.

The Daily Sun/Bangladesh/ 11th July 2012