Bangladesh's central bank orders AI surveillance to combat online gambling

Bangladesh’s central bank has instructed all banks and financial institutions to intensify monitoring of online gambling transactions and adopt artificial intelligence (AI) tools to detect suspicious activity, amid a broader government crackdown on digital gaming platforms.

The directive, issued by the Bangladesh Bank’s Payment Systems Department on May 28, calls for “immediate necessary action” when customers or merchants are suspected of involvement in online gambling. It also mandates the prompt notification of law enforcement agencies.

Banks have been advised to “leverage Artificial Intelligence (AI) technology for this purpose” and raise public awareness of the social and financial risks associated with gambling. Financial institutions must also ensure that registered merchants operate strictly within their declared business areas.

The measures align with the newly enacted Cyber Security Ordinance, 2025, which bans all forms of online gambling. Violations under Section 20 of the ordinance can result in up to two years in prison, a fine of up to one crore taka ($90,000), or both. Related offenses are covered under Sections 21 and 22.

The directive comes amid a wider enforcement effort. On May 27, the Criminal Investigation Department (CID) of Bangladesh Police launched a nationwide crackdown on illegal online gambling networks. Authorities identified over 5,000 mobile financial service (MFS) accounts linked to gambling, and more than 1,000 agents have been named for possible license cancellations and financial penalties.

The CID’s action follows the government’s announcement of legal proceedings against over 1,100 agents involved in digital betting operations.

Bangladeshi courts are also scrutinizing the proliferation of gambling content. In May, the High Court ordered ministries and regulators to explain how such content remains accessible on digital platforms. A seven-member committee was appointed to investigate celebrity involvement in gambling promotions, with findings due within 90 days.

Faiz Ahmad Taiyeb, an advisor to the government, urged the public to report accounts promoting gambling and warned that even advertising related to it could be punishable.

The Bangladesh Bank has mandated immediate enforcement of the directive by all banks and financial institutions.