The government is set to introduce a new law providing for life imprisonment and hefty fines to curb currency counterfeiting and dismantle organised counterfeit currency networks.
A draft of the Counterfeit Currency Prevention Act, 2026, has been prepared to strengthen legal measures against the production, possession, smuggling and circulation of counterfeit currency, according to a notification published by the Financial Institutions Division of the finance ministry.
Under the draft law, anyone involved in counterfeiting currency or stocking, buying, selling, or smuggling counterfeit notes, or possessing equipment or chemicals used to produce them, could face life imprisonment.
The offender would also be fined either twice the value of assets acquired through the crime or Tk 1 crore, whichever is higher. Failure to pay the fine could result in an additional five years’ imprisonment.
The proposed law also prescribes up to 10 years’ imprisonment and a Tk 10 lakh fine for knowingly spreading rumours related to currency. Producing objects resembling genuine currency with the intent to deceive would carry a maximum sentence of five years in prison and a fine of up to Tk 1 lakh.
The draft expands the definition of counterfeit currency to include not only fake paper notes and coins but also bleached, tampered and mismatched currency.
All offences under the proposed law would be cognisable, non-bailable and non-compoundable, with trials to be held in the Court of Session or Metropolitan Court of Session.
To strengthen prevention efforts, the law proposes forming a Counterfeit Currency Prevention Committee, headed by a Bangladesh Bank official not below the rank of executive director and comprising representatives from relevant agencies.
Bangladesh Bank would also establish a central database containing information on counterfeit currency manufacturers, suppliers, carriers and related materials to support investigations by law enforcement and intelligence agencies.
The draft further authorises sub-inspectors or officers of equivalent or higher rank from law enforcement agencies, including Border Guard Bangladesh and the Coast Guard, to search suspected premises and arrest suspects without a warrant.
It also makes still images, video footage and recorded conversations obtained through mobile phones, the internet or other electronic devices admissible as evidence in court.
