The Bangladesh Bank (BB) issued a circular on Sunday, mentioning a checklist of some 20 supporting documents that will be required while applying for new agent banking or expanding the old ones.
According to the BB, the checklist has been prepared in line with the "Prudential Guidelines for Agent Banking Operation in Bangladesh."
The circular mentioned that a report, assessing the risks associated with agent banking operation and the measures to be adopted to mitigate the risks, must be submitted.
Another report containing opinion of an independent auditor regarding the adaptation of internal control policy for agent banking operation needs to be provided while applying for new agent banking or expanding old ones.
Besides, approval by the board of directors, addressing, at least, the following areas: agent selection, management and training, customer due diligence and customer protection measures, and infrastructure to support agent banking, will be required.
The BB circular mentioned that internal control and monitoring, business continuity plan (BCP), and contingency arrangements for agent banking operation must be incorporated with the application.
The checklist also includes some documents, relating to combating anti-money laundering as well as financing of terrorism policies and procedure.
If the proposed agent is a private sector organisation, it has to have a valid business license or permission for lawful business activities.
The proposed agent or the owner/manager of the proposed entity needs to have minimum one year of experience in the related field.
The list also includes a certificate stating the proposed agent is not a bank-related person, and documents that s/he is not a defaulter with any bank or financial institution.
Besides, the documents, showing that the agent is not convicted by a court or not under investigation for any criminal charge and money laundering or terrorist financing activities, and not under investigation of the Anti-Corruption Commission, must be submitted.
