The Bangladesh Bank has decided to conduct a forensic audit of mobile financial service provider Nagad. The decision was made during a central bank board meeting on 10 November, according to spokesperson Husne Ara Shikha.
A forensic audit, as defined by Investopedia, involves a detailed examination of financial records to uncover potential criminal behavior such as fraud or embezzlement. Evidence gathered during such audits can be used in court proceedings.
In addition to initiating the audit, the Bangladesh Bank also restructured its Audit Committee. Dhaka University professor Rashed Al Mahmud Titumir replaced Md Nazrul Huda as a member of the committee. Huda had been serving on the committee since January 2020.
Nagad has been under increased scrutiny since the change in government in August this year. On 21 August, the central bank appointed Director Muhammad Badiuzzaman Dider as Nagad’s administrator for a year, supported by six additional central bank officials. The following day, Bangladesh Bank Governor Ahsan H Mansur announced the suspension of Nagad Digital Bank PLC’s license pending a review.
On 12 September, Administrator Badiuzzaman filed a general diary against Nagad’s former managing director, Tanvir A Mishuk, alleging threats made by the CEO. Later, on 17 September, the central bank formed a management board, chaired by KAS Murshid, former director general of the Bangladesh Institute of Development Research, to chart Nagad’s strategic future.
This audit and increased oversight signal the regulator’s commitment to addressing concerns surrounding the financial operations of Nagad.
Source: The Business standard
