Mobile banking service bKash has illegally remitted money in the process of becoming a regional sponsor of the world champion Argentina football team.
This was disclosed in a report of the Financial Integrity and Customer Services Department (FICSD) under the Bangladesh Financial Intelligence Unit (BFIU) formed by the Bangladesh Bank (BB) to prevent money laundering and terrorist financing.
A delegation of FICSD visited bKash’s office in Dhaka a few days ago regarding irregularities related to its brand partnership agreement with Argentina Football Association and then they prepare this report.
FICSD is the Central Anti-Money Laundering and Terrorist Financing Agency of Bangladesh under BB. They primarily provide law enforcement agencies with information related to suspicious transaction reports, money laundering and terrorist financing reported by various agencies.
After the football superpower Argentina became the world champion in 2022, bKash Bangladesh announced the regional sponsorship of the team in May last year. Although the amount of money in sponsorship was not announced, it was known that 4 lakh 10 thousand dollars was transacted in this case. It is learned that the money sent by bKash was not sent from Bangladesh, and there is no authorization from BB in the transaction.
An application was made in February last year by bKash for the payment of 4 lakh 10 thousand dollars. However, their application was rejected in March in view of the dollar crisis and the recent economic situation. But the delegation of BB investigated the matter and found out that one of the foreign investment companies of bKash Limited has paid the entire 4 lakh 10 thousand dollars to the Argentina Football Federation as a gift in the name of bKash.
A top official of Bangladesh Bank said such transactions without authorization are completely illegal.
The letter signed by FICSD Deputy Director Arup Kumar Das said there was no agreement between Argentina Football Association and bKash Limited. Instead, the amount was paid by bKash’s foreign partner through a one-time payment.
According to experts, while bKash calls it a gift, it will actually be shown as an investment by a foreign partner in bKash. Through this, the investment of dollars in the country will be shown even if the country did not receive dollars.
It is actually a part of money laundering or hundi. The report said, “During the inspection, bKash Limited did not give any clear answer even though information regarding the foreign partner company, mode of payment, contract information etc. was requested from bKash. It appears to question the transparency of the entire development agreement and payment with the Argentina Football Association (AFA).”
The inspection team of BB has repeatedly asked for various information but neither the contract letter nor the name of any company or organization that has been paid by bKash was provided. This is considered a clear violation of Foreign Exchange Regulation Act 1974.
