Bangladesh Bank (BB) has moved to take legal action against the
persons and the institutions that are offering people illegal currency trading
through internet and electronic trading portals.
In a statement last week, the
central bank advised people not to involve in this illegal business and warned
them of stern consequences for such activities.
The BB referred to some recent
advertisements in the media that offered people training for earning high
returns from online foreign exchange trading and dealing.
The BB said these
advertisements also offered currency loading facility in debit cards to run the
online foreign currency exchange business by taking the 'risks' of the 'daily
fluctuation of exchange rates'.
The trading of its kind by
unauthorised people and organisations is illegal. The Foreign Exchange
Regulation Act allows only licensed dealers and money exchangers to run such
business.
It advised people to refrain
from responding to such tempting, but illegal offers and warned respective
advertisers of punitive actions.
Most web-based foreign exchange
transactions are carried out on a margining basis with huge leverage or on an
investment basis, where the returns are based on currency trading, a BB
official told the news agency.
People are advised to make the
margin payment for these transactions through their credit or debit cards,
which are not only illegal, but also involve high risk of losing their total
credit or debit limit to unknown people.
The Reserve Bank of India (RBI)
in April last year issued similar warning against such business and cautioned
people of the financial and legal risks of these activities.
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