The Bangladesh Bank will investigate the financial transactions and other e-commerce activities of e-commerce platform Evaly.
Confirming the matter, Abu Hena Razee Hasan, head of Bangladesh Financial Intelligence Unit (BFIU), said the bank accounts of Evaly and its top executives had been frozen after the media reported on the e-commerce plarform’s alleged illegal activities.
The BFIU, an arm of the central bank, directed all commercial banks and financial institutions to freeze all bank accounts operated by the top executives of Evaly, through a letter issued on Thursday.
UNB obtained a copy the BFIU letter, signed by its Deputy Director Fuara Khatun, which asks all banks and financial institutions to freeze accounts of Evaly Chairman Shamima Nasrin and Managing Director Md Rasel.
The letter mentioned both the old NID and smart NID card numbers and said that directives had been issued to suspend all transactions to and from the bank accounts of Evaly chairman and MD for the next 30 days under the Money Laundering Prevention Act 2019.
The banks and financial institutions have also been directed to send relevant documents of their opening of bank accounts, like account opening forms, KYC (know your customer), updated transactions statements, deposits and withdrawal receipts of over Tk 50 lakh, pay order, bank cheques, the information about the payees and depositors, and their NIDs with images within five working days from date of the letter's issuance.
Allegations galore against Evaly
There have been media reports that e-commerce firm Evaly has been running business with unusual cash back offers – as much as 100% to 150% – to customers on advance payment for a product.
E-commerce business experts say no firm can give 100% or more cash back against purchase of a product. It was alleged that when a customer deposited money to buy a product, Evaly took a long time to deliver the product.
The Directorate of National Consumer Right Protection, a department under the Ministry of Commerce, also received many complaints from consumers about alleged fraud by Evaly.
This prompted the Commerce Ministry to form a high-level committee to investigate the allegations.
Bangladesh Bank officials said one of the major allegations against Evaly is that it is forcing its consumers to deposit their money in e-wallet of the firm, which is illegal. The e-wallet is known as PSP and PSO in financial terms.
On March 5, the central bank in a circular asked all scheduled banks not to provide any banking services or transactions facility to unlicensed payment service providers (PSP) and payment system operators (PSO).
The central bank found that several entities, especially e-commerce firms, have been illegally operating as PSPs and PSOs without obtaining the required licence from Bangladesh Bank.
The circular said that customers' confidence in legal PSPs and PSOs would be hurt if any of the illegal entities closed down operations or cheated customers.
BB asked all scheduled banks not to facilitate custodian accounts, trust-cum-settlement accounts or any other accounts or transaction facilities and banking services to the entities which were running mobile or e-wallets as payment system operators or any other payment service provider without obtaining licence from the central bank.
The banks were also asked not to provide payment gateways or merchant aggregation services to the illegal PSPs and PSOs.
Bangladesh Bank officials said Evaly had violated that provision, which is why it will be investigated.
