The Bangladesh Bank is formulating a new law to fight rackets that take advantage of the people's lack of knowledge about currencies, and push in counterfeit local and foreign currencies, especially ahead of major festivals when there are large cash flows.
The draft calls for life imprisonment for possessing 10,000 pieces of counterfeit currencies and anyone caught with more than two fake notes would have to face at least six months in prison unless they can prove their innocence, officials involved in the formulation process told the Dhaka Tribune.
Executive director of the central bank's currency management wing, Dasgupta Asim Kumar, tried to allay fears that the proposed law might victimise innocent people.
"Usually, innocent people do not have bulk volumes of counterfeit notes in their possession. In principle, someone caught with one or two fake notes is an offender and such a person can face punishment of six months in jail according to the proposed law. The possessors must prove themselves innocent, or face the punishment."
Dasgupta, who is also the spokesperson on the issue, told the Dhaka Tribune that a technical committee of the central bank had been reviewing the proposed law. After finalisation, the proposal would go to the central committee for checking fake currencies of the Bangladesh Bank. The bill would then go to the finance ministry and the law ministry before being placed in the parliament.
The draft also allows locally elected representatives such as union parishad chairmen and councillors to play the role of arbitrator for such cases in the villages.
"We have proposed such provision as the local representatives know the good and the bad people of their localities. So, the chance of an innocent person being victimised is very low," he justified.
Central bank and police sources say over 5,300 cases over counterfeit currencies are pending trial at the courts. The alleged offenders were charged in line with the Bangladesh Penal Code and rarely face punishment, prompting the central bank to formulate a new law.
Former BB governor Dr Mohamed Farashuddin welcomed enactment of a special law to tackle counterfeit currency trade.
"Risks are there, but I think, an innocent person would not deal with 10,000 fake notes. Again, persons handling bulk volume have clear idea about genuine notes."
He also suggested avoiding the use of cash for large transactions. "Cheques, bank transfer and many other tools are in place for such exchanges. However, more brainstorming is needed before passing the law to ensure that no innocent person is victimised."
Abdur Rahman, a grocer in Nagaon sadar upzilla, has recently become a victim of fake currency racket. "A gentleman, clad in a suit and tie, gave me a Tk1,000 note in exchange of three packets of cigarettes. The bank identified it as a fake note when I deposited the money."
The grocer also called for more initiatives from the government to teach people how to detect counterfeit currencies.
Bangladesh part of a route
Bangladesh has been used as a route by a number of rackets to push fake rupees into neighbouring India and spread of counterfeit US dollars into the international market.
Indian home secretary Shri Gopal K Pillai on December 29, 2009 expressed concern over the use of Bangladesh to push counterfeit currency through the India-Bangladesh border. His counterpart, Abdus Sobhan Sikder, assured that Bangladesh would take necessary measures to stop such rackets.
The police in 2012 recovered over 20million counterfeit Indian Rupees, which came in three large consignments from Pakistan.
Pakistan national Md Kasif, 24, a Dhaka-bound passenger from Karachi was found in possession of fake Rs8.6m. Another Pakistani national, Afzal Mahmud, 35, was carrying Rs6.1m and Md Hashim, 48, had Rs5.4m while travelling to Dhaka from Karachi.
Additional deputy commissioner of police's Detective Branch (DB), Moshiur Rahman, said, "Pakistani nationals guised as businessmen carry counterfeit rupees from Karachi and push it into India through local agents in the India-Bangladesh border."
He added that they have enhanced intelligence activities against such rackets and have busted 19 abandoned currency counterfeiting facilities in 2011 and 2012.
"Some African nationals carry fake US dollars into Bangladesh showing forged identity cards of the UN and other international bodies," the DB official said.
