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