Cenbank to conduct forensic audit of Nagad

The Bangladesh Bank will conduct a forensic audit of mobile financial service (MFS) provider Nagad.

The decision was taken at a board meeting of the central bank today (10 November), the regulator's spokesperson Husne Ara Shikha told journalists.

According to Investopedia, a forensic audit is an examination and evaluation of a firm's or individual's financial records.

During a forensic audit, an auditor seeks to derive evidence that could potentially be used in court. A forensic audit is used to uncover criminal behaviour such as fraud or embezzlement.

The board meeting also restructured the Bangladesh Bank's audit committee, inducting three new directors.

The meeting also restructured the central bank's Audit Committee by removing its member Md Nazrul Huda and replacing him with Dhaka University teacher Prof Rashed Al Mahmud Titumir. Nazrul Huda was appointed as a member of the Audit Committee on 12 January 2020.

Meanwhile, Nagad has come under increased scrutiny by the Bangladesh Bank for its activities since the fall of the Awami League government in early August this year.

On 21 August, the central bank appointed its Director Muhammad Badiuzzaman Dider as the administrator of Nagad for one year.

In addition, six other central bank officials were appointed to assist the administrator.

The following day, Bangladesh Bank Governor Ahsan H Mansur announced the suspension of the licence for Nagad Digital Bank PLC, stating that the central bank will review the process.

On 12 September, Administrator Badiuzzaman filed a general diary against the digital financial service's former managing director Tanvir A Mishuk with Banani police station, citing threats made by the CEO.

On 17 September, the Bangladesh Bank formed a management board to determine the future action plan and strategic management of Nagad.

KAS Murshid, former director general of the Bangladesh Institute of Development Research, was made the chairman of this board.