Bangladesh is preparing a new surveillance framework for mobile financial services (MFS) transactions to combat fraud, money laundering, fake SIM cards and fraudulent MFS accounts, with authorities planning to use artificial intelligence (AI), machine learning and real-time location data.
Under the proposed system, authorities will be able to monitor who sends money, who receives it, where the transaction originates and whether the transaction pattern appears normal.
The initiative, based on information from the Home Ministry and relevant agencies, will introduce a real-time monitoring mechanism to identify suspicious transactions.
The National Telecommunication Monitoring Centre (NTMC) is expected to develop the system, using AI and machine learning to automatically detect fraudulent patterns, unusual transactions and possible money-laundering trends.
Bangladesh Bank, NTMC and MFS providers are also planned to be integrated into the monitoring framework, allowing authorities to identify the people involved in a transaction and its location more quickly. Real-time location tracking proposed: Authorities are considering the use of customers' real-time location information during digital transactions. Bangladesh Bank has been asked to take steps to facilitate the supply of such information.As an alternative, authorities have proposed making geolocation mandatory whenever the relevant MFS application is opened during a transaction.
MFS agents will also come under a virtual digital boundary system. This would allow authorities to detect if an agent operates outside its designated area and prevent unauthorised transactions using an agent ID registered in another location. NID, biometric verification to be mandatory: Mandatory verification of national identity cards and biometric information is also being planned for opening MFS accounts.The verification process would use the Bangladesh Telecommunication Regulatory Commission's Central Biometric Verification Monitoring Platform. Existing MFS accounts, in addition to new accounts, would be reviewed by matching customers' NID information with their mobile numbers.
Fraudulent or unauthorised users would face necessary action.MFS providers have also been instructed to ensure 100% e-KYC compliance for customers, agents and retailers and regularly update their information.
Tighter SIM registration rules: The authorities are also planning stricter SIM registration rules. A SIM registered under the name of a deceased person could be automatically deactivated six months after the person's death.
For this purpose, the biometric verification system is expected to be connected with birth and death registration databases and other government databases.The government is also considering limiting each NID holder to a maximum of five SIM cards across all operators. Additional verification would be required for registering more than two SIMs.Fingerprints and facial images would also be centrally verified during SIM registration.Coordinated action against financial crimes.
Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, said the government was taking a coordinated initiative to prevent crime, money laundering and drug trafficking through MFS.”If implemented, the initiative will prevent the misuse of MFS services,” he said.
Experts told The Daily Industry that integrating Bangladesh Bank, telecom authorities and MFS operators into a real-time monitoring framework could significantly improve the detection of suspicious transactions.
They said the use of AI and machine learning could help identify transaction patterns that may be difficult to detect through conventional monitoring. However, they stressed that the system should be implemented with strong safeguards for customers' personal and financial data.
Experts also said mandatory e-KYC, biometric verification and tighter control over SIM registration could help reduce the use of fake identities and accounts in financial crimes.They noted that effective coordination among Bangladesh Bank, the NTMC, BTRC, MFS providers and other government agencies would be crucial for making the proposed surveillance framework effective.
