Central Bank to conduct forensic audit of Nagad

Bangladesh Bank will conduct forensic audit of mobile financial service provider Nagad.

This decision was made in a meeting of the board of directors of the central bank held on Sunday (November 10).

Central Bank Spokesperson Husnay Ara Shikha told this to media.

An audit or verification of the financial records of an individual or organization is called a forensic audit.

During a forensic audit, an auditor looks for evidence that can be used in court. Forensic audits are used to uncover criminal activities such as fraud or embezzlement.

Forensic audit also recovers deleted information from the company's IT system, software etc.

Using the name of postal department the mobile financial service Nagad was launched. As per the existing law, no organization can provide mobile financial service except the sister concerns of any bank or financial institution. Nagad started mobile financial services in violation of this law.

Despite violating the law, no action was taken by the central bank or the government against the institution. Rather, the institution was later licensed as a non-bank financial institution. After the company surrendered the license for various reasons, then the central bank also gave them a digital bank license.