hundi system in bangladesh
TRANSCRIPT
Effects of Hundi on Money Market
Presented ByPresented By MUSUNNA GALIB ID-06
JANNAUL FERDOUS ID-07JINAT ANJUM ID-32ABDUL MALAK ID-41MD. IBRAHIM KHALIL ID-49
Money
laundering
Trying to hide the source earnings by conducting a number of transactions. The transactions take place in the following
manners.
1. Putting the money into 2. bank account3. Purchasing property4. Making payment of loan5. By conducting frequent
transaction.
.
Sources of money laundering includes
Drug traffickingHuman traffickingSmugglingHundiMoney laundering
take place•Banks•Stock brokers •Insurances•Tax firms•Accounting firms•Audit services
Hundi•Alternative remittance system•Was developed in India•have no legal status•Not covered under the Negotiable Instruments Act, 1881•Involves trusts and extensive use of connection
CASE 1
Lina
Robin
Mitul
Faurk
A real Case
Findings from the case
•Most of the clients involved in hundi are the victim of circumstances•They have no intention to commit the crime. Just they are not getting alternatives.•Lengthy procedures of formal channel are indirectly induces the NRB’s to go for hundi.
Money Market
•An integral part of financial market•Medium for the redistribution of short term loanable funds•financial instruments with high liquidity and very short maturities are traded.•Performs short-term borrowing and lending like
•selling deposits•Discounting deposits•Treasury bills •Commercial papers etc.
Participant of Money Market
Components of money market
Inter-bank market
Call money market Bill market
Behinds its popularity Cost Effective
Less legal
Constraint
Convenient
Delivery
Faster than Bank
•Receiver would not go to bank.
•No bank account is needed
•Receiver would not go to bank.
•No bank account is needed
Behinds its popularity Cost Effective
Less legal
Constraint
Convenient
Delivery
Faster than Bank
•No identification number
•No work permit required
•No identification number
•No work permit required
Behinds its popularity Cost Effective
Less legal
Constraint
Convenient
Delivery
Faster than Bank
•It is effective even in remote area.
•Home delivery services.
•It is effective even in remote area.
•Home delivery services.
Behinds its popularity Cost Effective
Less legal
Constraint
Convenient
Delivery
Faster than Bank
•Just a phone to a agent of Bangladesh makes the
services instantly
•Just a phone to a agent of Bangladesh makes the
services instantly
Effects of hundi on Money Market
Effects of hundi on Money Market (cont.)
Thanks to allThanks to all