The Bangladesh cabinet has given its final approval to a draft of the ‘Payment and Settlement Systems Act, 2021’, which specifies a maximum of five years in prison, a Tk 5 million fine, or both for committing bank fraud through digital cheques.
The decision was taken at a cabinet meeting chaired by Prime Minister Sheikh Hasina via video conference from the Ganabhaban on Monday, reports bdnews24.com.
There were regulations, but no precise laws governing bank payments and settlements, Cabinet Secretary Khandker Anwarul Islam told the media. As many digital transactions occur nowadays, the new law was proposed.
The draft law has 47 sections, including provisions for electronic money transfers. However, cryptocurrency, or virtual currency has not been included.
Cryptocurrency is not approved as a medium of exchange by the central bank, he said.
“The law has particular sections that outline offences. Section 4/5 defines how transactions will be conducted, how payments will be made, how they will be managed and how services will be offered. The draft also includes rules regarding board management, the minimum investment needed to be a member of the board, ownership and management, management of inspections, and rules of service. Provisions include the transfer of funds through electronic means and the issuing of digital funds by the central bank.”
“Section 37 of the draft law outlines the punishment for those who commit offences,” the cabinet secretary said. “Section 39 specifies that Bangladesh Bank can remove the owner, director, chief executive, manager, secretary or any other official of a company because of any offences they commit or are involved in.”
