In a move to bolster the stability of the country’s payment systems, Bangladesh Bank (BB) today issued a new circular requiring comprehensive reporting from various financial service entities.
The directive applies to all Mobile Financial Services (MFS), Payment Service Providers (PSP), Payment System Operators (PSO), and Utility Service providers licensed by the central bank.
The circular highlighted that these organizations maintain Trust and Settlement Accounts within scheduled banks to manage their operations.
By mandating accurate reporting of these accounts and e-money or merchant liabilities, the central bank aims to ensure the safety of customer funds, maintain the stability of the overall payment system, and secure public trust.
The responsibility for providing timely and accurate data rests solely with the concerned institutions.
Under the new regulations, institutions must submit detailed data on a daily basis, covering several key areas including the balance of ‘Trust and Settlement Accounts’, investments made from Trust and Settlement Accounts, trust funds in transit and detailed data regarding e-money and merchant liabilities.
This information must be submitted to the relevant department of Bangladesh Bank by the 10th day of the following month using a specifically designated template.
The central bank has warned of severe penalties for non-compliance or the provision of inaccurate information. Under Section 37(3) of the Payment and Settlement Systems Act, 2024, providing false information is a punishable offense in court.
Additionally, Bangladesh Bank reserves the power to impose fines under Section 41 of the same Act for such violations.
These directives have been issued under the authority granted by Section 18(4) of the Payment and Settlement Systems Act, 2024, and are effective immediately.
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