Introduction to the MCAB

The Money Changers’ Association of Bangladesh (MCAB) is a prominent organization that represents the interests of money changers operating within Bangladesh. Established to oversee and regulate the activities of licensed money changers, the association plays a crucial role in maintaining the integrity and smooth functioning of the currency exchange market in the country.

Key Functions and Objectives: 

1. Formation and Purpose:

• The MCAB was established to represent the interests of money changers in Bangladesh, who are engaged in the business of buying and selling foreign currency. The exact date of its formation is not widely documented, but it likely emerged as the foreign exchange market in Bangladesh began to develop and required greater oversight.
• The primary purpose of MCAB is to ensure that money changers operate within the legal framework set by the Bangladesh Bank, the country’s central bank, and to protect the interests of its members.

2. Regulation and Compliance:

• MCAB works closely with Bangladesh Bank to ensure that its members adhere to the regulations governing foreign exchange transactions. This includes compliance with anti-money laundering (AML) laws, proper documentation of transactions, and maintaining transparency in operations.
• The association also helps its members navigate changes in regulations and provides guidance on best practices in the business.

3. Role in the Business:

• MCAB acts as a liaison between money changers and regulatory authorities, advocating for the needs and concerns of its members. It plays a crucial role in the ongoing dialogue with the government on issues related to the foreign exchange market.
• The association also organizes training programs, workshops, and seminars to educate its members about new regulations, market trends, and compliance requirements.

4. Challenges and Adaptation:

• Over the years, MCAB has had to address various challenges, including fluctuations in exchange rates, competition from banks and other financial institutions, and the need to adapt to technological advancements in the financial sector.
• The rise of digital payments and online currency exchange platforms has also impacted traditional money-changing businesses, prompting MCAB to explore ways to modernize and remain relevant.

5. Current Activities:

• MCAB continues to be active in representing its members, addressing issues related to currency shortages, regulatory changes, and market volatility.
• The association plays a role in ensuring that money changers can provide services to the public in a safe and regulated environment, contributing to the overall stability of the foreign exchange market in Bangladesh.

The history of the MCAB reflects the broader trends in Bangladesh’s financial sector, particularly the need for regulation and oversight in the foreign exchange market. The association has played a key role in supporting money changers and ensuring that they operate within the legal and regulatory framework set by the government.