Bangladesh Bank to conduct forensic audit on mobile financial services (MFS) provider Nagad.

The decision was taken at a meeting of the central bank’s board of directors today (November 10), the regulator’s spokesperson Husne Ara Shikha told the media.

According to Investopedia, a forensic audit is an examination and evaluation of the financial records of a firm or individual.

During a forensic audit, an auditor tries to obtain evidence that could be used in court. A forensic audit is used to uncover criminal behavior such as fraud or embezzlement.

The board meeting also restructured the audit committee of Bangladesh Bank.

The meeting also restructured the Audit Committee of the central bank by removing its member Mr Nazrul Huda and replacing him with Dhaka University professor Prof Rashed Al Mahmud Titumir. Nazrul Huda was appointed as a member of the Audit Committee on January 12, 2020.

Meanwhile, Nagad has come under increased scrutiny by the Bangladesh Bank for its activities since the fall of the Awami League government in early August this year.

On August 21, the central bank appointed its director Muhammad Badiuzzaman Dider as Nagad’s administrator for one year.

In addition, six other central bank officials have been appointed to assist the administrator.

The next day, Governor Ahsan H Mansur announced the suspension of Nagad Digital Bank PLC’s license, saying Bangladesh Bank would review the process.

On September 12, administrator Badiuzzaman filed a general diary against the former CEO of the digital financial service, Tanvir A Mishuk, at the Banani police station, citing threats made by the CEO.

On September 17, Bangladesh Bank formed a board of directors to determine the future action plan and strategic management of Nagad.

KAS Murshid, former director general of Bangladesh Institute of Development Research (BIDS) has been appointed as the chairman of this board.