Many of Multi-Level Marketing companies are doing business allegedly violating law.
Such violation might lead to another round of heavy financial loss for customers, say officials.
Eight MLM companies in the country continue their business having stay order from the court on government decision which disqualifies them for licence.
The sources said foreign MLM companies are illegally transferring their profit without taking permission from Bangladesh Bank.
The eight MLM companies include foreign Daehsan (Bangladesh) Pvt Ltd, Destiny 2000 Ltd, Dream Together (Pvt) Ltd, foreign Forever Living Products Bangladesh Ltd, Pinnacle Sourcing Ltd, foreign Tianshi (Bangladesh) Company Ltd, Life Way Bangladesh (Pvt) Ltd and Maknom International Ltd.
A commerce ministry official said the MLM firms are violating MLM law and depriving clients of travel incentive and profit sharing.
They are also involved in irregularities in transfer of rights of distributors and duel distributors and abnormal commission at procurement stage, he said.
According to Bangladesh Bank (BB) report, the country’s largest MLM company Destiny laundered around Tk5,113 crore from 2002 to 2006 through 282 accounts by its three sister concerns - Destiny 2000 Ltd, Destiny Tree Plantation Ltd and Destiny Multipurpose Cooperative Society Ltd (DMCSL).
A total of 7m clients of Destiny had lost their deposit from 2002 to 2006.
The BB report said Destiny 2000 started operating bank accounts from 2000, DMCSL from 2005 and Destiny Tree Plantation from 2006.
The BB found only Tk190 crore in Destiny Group’s 282 frozen bank accounts.
Commerce ministry sources said the parliamentary standing committee on commerce ministry is now examining the irregularities of MLM companies.
The committee will also give its opinion on the extension of four MLM companies as their respective licences expired on February 2 this year.
The four MLM companies are Modern Herbal, World Mission, Shadhine Online and Rich Business System.
“If necessary, we will amend the MLM law 2013 to stop cheating innocent people,” said Senior Commerce Secretary Hedayetullah Al Mamoon said.
He said they would make a decision on the renewal of licence soon after getting opinion from the standing committee.
According to the law, every MLM company must obtain a licence before starting its business.