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The central bank earlier identified six core risk areas in the banking sector. The risk factors are: credit, asset and liability, foreign exchange, information technology, internal control and compliance, and money laundering. Besides, inspection strategies of the central bank have been amended to address the recent foreign exchange irregularities using accepted bills and inland bill purchases (IBPs) in both foreign and local currencies. During the inspection of AD branches, the inspectors are collecting different information including foreign bills' purchases (FBPs), loans against trust receipts (LTRs), payment against documents (PADs), loan against imported merchandise (LIM), forced loans and off-balance exposures.
Others communicate security messages and advise you to install software from the email that checks and removes viruses. By downloading the software you are in fact tricked into downloading a virus.
Regular inspections are being carried out to ensure whether due diligence is being followed in case of inland bill purchase and accepted bills. The BB also has started regular preparation of diagnostic review report of the banks to bring the concerned banks under intensive monitoring after evaluating the gravity of irregularity through distant cautionary signal.
Conclusion
The impact of frauds on entities like banks, which are engaged in financial activities, is more significant as their operations involve intermediation of funds. The economic cost of frauds can be huge in terms of likely disruption in the working of the markets, financial institutions, and the payment system. Besides, frauds can have a potentially debilitating effect on confidence in the banking system and may damage the integrity and stability of the economy. It can bring down banks, undermine the central banks supervisory role and even create social unrest, discontent and political upheavals. The vulnerability of banks to fraud has been heightened by technological advancements in recent times. If the steps taken by Bangladesh Bank can be fully implemented, the threats of the frauds in banking sector will be removed.