PSD Circular No. 05: E-Commerce Activities

Bangladesh Bank Head Office, Dhaka Department of Currency Management and Payment Systems Payment Systems Division 02 November, 2009 PSD Circular No.: 05/2009 Date: 18 Kartik, 1416

Managing Director / Chief Executive All Scheduled Banks operating in Bangladesh

Dear Sir,

Context of E-Commerce Activities

From now on, all scheduled banks may provide the following facilities for their e-commerce customers:

(1) Payment of utility bills to the recipient's bank account from the customer's own account online; (2) Online transfer of funds from one bank account of a customer to another bank account held by a customer of the same bank; (3) Online payment made or received from the buyer's bank account to the seller's bank account as a means of payment for purchase and sale in the e-commerce system; and (4) Credit card transactions over the internet in local currency.

The above online payments shall be considered equivalent to cash transactions, and the Prevention of Money Laundering Act and various circulars/circular letters/directives issued thereunder shall be applicable. In a manner similar to measures applicable for cash transactions, Suspicious Transaction Reports (STRs) and Cash Transaction Reports (CTRs) must be filed with the Financial Intelligence Unit of the Money Laundering Prevention Department of Bangladesh Bank for online payments. All banks are advised to remain vigilant to prevent the misuse of online payment systems in money laundering activities.

Please acknowledge receipt.

(Debasish Chakraborty) Deputy General Manager Phone: 7123443