Regulatory Alerts2018-07-30
Added · Updated
Bangladesh Mobile Financial Services (MFS) Regulations, 2018
The Bangladesh Mobile Financial Services (MFS) Regulations, 2018 replace previous guidelines and mandate that only scheduled commercial bank-led MFS models are permitted in Bangladesh. Subsidiary-based MFS providers must maintain a minimum paid-up equity capital of 45 Crore BDT and build a capital reserve equal to that amount from retained earnings. The regulations require MFS providers to act as Payment Service Providers under direct supervision of the Payment Systems Department, while prohibiting them from lending their own funds or conducting cross-border transactions. Existing non-performing MFS licenses may be cancelled after a twelve-month monitoring period, and all providers must adhere to strict custodial account segregation and government security investment requirements.