Pakistani firm faces allegations of suspicious transactions after acquiring ‘Amar Pay’

Pakistan-based fintech company SimPaisa has acquired a 75.284 percent stake in the local payment gateway Amar Pay. Following the change in ownership, the company has been accused of attempting to process payments for gambling and pornographic websites, as well as engaging in suspicious financial transactions.

The Financial Crime Investigation Unit of the Detective Branch (DB) of the Dhaka Metropolitan Police (DMP) has launched an investigation into the matter.

Mobile financial service (MFS) providers bKash and Nagad have suspended several merchant accounts associated with Amar Pay over issues related to payments for gambling and pornographic websites.

Financial sector experts have described SimPaisa’s use of the "netting off" method to reconcile local and foreign currency transactions as a form of "digital money laundering."

Amar Pay did not respond to written questions from Asia Post regarding these allegations. However, company representatives denied all accusations in a phone conversation.

Ownership Changed for Tk100 Million

Initially, SimPaisa Holdings Private Limited signed a memorandum of understanding (MoU) to acquire a 33.33 percent stake in Amar Pay for US$1 million (approximately Tk123 million).

The agreement was signed with SoftTech Innovation Limited, the parent company of Amar Pay. The principal promoters of SimPaisa are Pakistani nationals, and the company is registered in Pakistan. However, the agreement with Amar Pay was executed through SimPaisa’s Singapore-registered entity.

Ultimately, SimPaisa acquired a 75.284 percent stake in Amar Pay for US$850,000—US$150,000 less than the original agreement—equivalent to just over Tk100 million. Bangladesh Bank granted its no-objection approval for the acquisition on January 6.

Sources claim that SimPaisa had already established operational control over Amar Pay before receiving the central bank's approval. Through SimPaisa Limited, registered in Bangladesh, the company allegedly began implementing its business decisions.

Several internal sources at Amar Pay told Asia Post that SimPaisa's first move after taking control was to begin processing payments for various foreign platforms.

Amar Pay started providing payment gateway services for the music streaming platform Spotify and the gaming platform PUBG, allowing Bangladeshi users to make payments through mobile financial services or bank cards. Later, SimPaisa allegedly attempted to onboard gambling and pornographic websites onto Amar Pay's payment network.

bKash and Nagad Suspend Merchants

After these controversial transactions came to light, bKash and Nagad suspended the relevant merchant accounts. At least three Amar Pay sources confirmed to Asia Post that the two MFS providers subsequently made prior approval mandatory before registering new merchants.

Under SimPaisa’s instructions, Amar Pay allegedly attempted to register payment services for gambling and adult websites named Pay Loco and another similar platform called Quar Tech.

Additionally, bKash and Nagad suspended merchant accounts including Omaza, OK Pay, Coda Payments, U Solve Pay, V380 Pro, Clips Pay, New Light, and Online Bet over allegations of links to gambling and pornography.

Citing customer confidentiality, neither bKash nor Nagad agreed to comment officially. However, several officials from both organizations separately confirmed to Asia Post that the accounts had been disabled or flagged due to suspicious transactions and attempts to onboard merchants outside regulatory guidelines.

Speaking on condition of anonymity, a Nagad official told Asia Post:

"After identifying suspicious transactions, several Amar Pay merchant accounts were suspended. We believe that since their direct accounts had been suspended, they resorted to using the 'sub-merchant' model. This means presenting a legitimate business name within the banking system while actually processing payments for illegal or prohibited websites."

During its investigation, Asia Post also found Amar Pay’s logo listed on PayKazma, a global payment solution provider for numerous gambling, pornographic, and adult websites, indicating an apparent business relationship between PayKazma and Amar Pay (now controlled by SimPaisa).

The DB’s Financial Crime Investigation Unit has already begun investigating the suspicious transactions. On June 24, the office of Additional Deputy Commissioner (ADC) Mohammad Aminul Haque Bappi emailed Amar Pay seeking information related to the merchant Midas Buy, which collected payments for services including Coda Payments and PUBG Games.

ADC Aminul Haque told Asia Post that the DB had requested all relevant merchant information, documentation, transaction records, and fund settlement details. However, he declined to provide further information because the investigation is ongoing.

Digital Money Laundering Under the Guise of Remittances

Since late 2025, Amar Pay has been processing payments for international platforms such as Spotify and PUBG. Currently, these two platforms generate an average monthly transaction volume of around Tk50 million through Amar Pay.

Under existing regulations, payments made by Bangladeshi users in local currency (Taka) are supposed to be converted into foreign currency and remitted to Spotify or PUBG through the banking system. However, according to the allegations, these funds never leave Bangladesh through official banking channels. Instead, the payments are deposited into a Bangladeshi bank account controlled by SimPaisa, while SimPaisa settles the foreign currency obligations to Spotify or PUBG using funds held in Singapore or Dubai.

At the same time, another alleged irregularity occurs in the remittance process. Bangladeshi expatriates send remittances through international services such as Western Union or Ria Money Transfer. SimPaisa reportedly receives these funds abroad but does not transfer the corresponding foreign currency into Bangladesh. Instead, it allegedly retains the foreign currency overseas while making local currency payments within Bangladesh.

So how do the families of migrant workers in Bangladesh receive their money? The remittances sent by expatriates are paid out using the Bangladeshi taka collected from ordinary people in Bangladesh for payments such as Spotify or PUBG bills.

Simply put, the taka remains within Bangladesh, while the foreign currency earned abroad stays overseas. As a result, the entire transaction functions much like the informal hundi system, depriving the state of the foreign exchange reserves it is entitled to receive.

A Digital Version of Money Laundering

Speaking to Asia Post on condition of anonymity, a senior official at Amar Pay said:

“If payments to foreign merchants were settled directly through Amar Pay or transferred abroad, Amar Pay would earn a profit margin of 0.5 percent. The money never enters any Amar Pay bank account. Instead, the funds collected on behalf of foreign merchants circulate through two scheduled banks in Bangladesh before reaching Amar Pay’s operational account. From there, the money is distributed to remittance beneficiaries.”

Banking sector expert Faruk Moinuddin described the arrangement as a form of digital money laundering.

Speaking to Asia Post, he said:

“If Amar Pay’s operations are indeed being conducted this way, it is simply a digital version of money laundering. It contradicts the fundamental principle of fund transfers. The money remains within Bangladesh, while the foreign currency corresponding to the remittance remains outside the country. Yet an equivalent amount is transacted locally. This cannot be considered a legitimate fund transfer.”

Accepting Payments Without Full Approval

Amar Pay, or SimPaisa, has not yet received full regulatory approval to collect payments on behalf of foreign merchants.

The company has applied to Bangladesh Bank for a PSD-1 (Payment Service Provider) license, but the application is still under review.

In a written statement to Asia Post, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan said:

“Amar Pay recently applied to Bangladesh Bank for PSD-1 approval to collect payments in local currency on behalf of foreign merchants, particularly digital service providers.

"The application is currently under review. Amar Pay is only entitled to receive a commission for collecting payments in Bangladeshi taka. SimPaisa Bangladesh will act as the local agent of the foreign merchants in these transactions. Netting is a commonly used settlement method."

"However, whether the proposed netting arrangement involves any risks will be assessed by the Payment Systems Supervision Department and the Bangladesh Financial Intelligence Unit (BFIU) during their regular inspections.”

Spotify Customers Facing Difficulties

Customers are reportedly experiencing significant problems despite paying for Spotify subscriptions through Amar Pay.

Amar Pay’s Facebook page has been flooded with complaints from users who say they are unable to access Spotify even after making payments.

One customer, Tanzina Nawroz, said she paid her Spotify subscription through Amar Pay using her bKash account on June 16. However, by June 29, her subscription had still not been activated. Both bKash and Spotify informed her that there was no issue on their end and that only Amar Pay could resolve the matter.

Another customer, Niloy Barua, said Amar Pay automatically deducts his Spotify subscription fee from his bKash account every month, yet he does not receive the service. Both bKash and Spotify similarly advised him to contact Amar Pay. As of June 29, neither Tanzina nor Niloy had received a solution.

According to an internal Amar Pay source, resolving such issues is highly complicated because Amar Pay cannot directly verify customer payment information. Since Amar Pay does not directly transfer money to Spotify, it is also unable to obtain direct support from Spotify.

Instead, customers’ payments are transferred directly to SimPaisa. When a customer files a complaint, SimPaisa contacts Spotify to verify the transaction. Customers receive service only after SimPaisa resolves the issue.

In other words, the money customers pay through Amar Pay does not go directly to Spotify. Customers believe they are paying Amar Pay, but in reality, all backend control lies with SimPaisa.

Bangladesh Bank’s Position

Bangladesh Bank issued a written statement regarding Amar Pay’s operations.

According to the central bank, foreign currency from any inbound remittance must be deposited into the overseas Nostro account of an authorized dealer bank. Platforms that collect or distribute remittances are not permitted to operate their own Nostro accounts.

Institutions such as SimPaisa, Western Union, and Ria Money first deposit foreign currency into the Nostro accounts of Bangladeshi banks. The corresponding funds are then distributed to beneficiaries within Bangladesh.

However, Asia Post's investigation found that Amar Pay is not connected to any such Nostro account. The operational account from which remittances are distributed is not linked to any Nostro account maintained by the bank for Amar Pay or SimPaisa.

A bank official, speaking on condition of anonymity, confirmed the matter.

According to the relevant department of the bank, it receives funds through transfers from another scheduled bank. It then distributes the money to beneficiaries based on instructions from Amar Pay or SimPaisa.

Bangladesh Bank further stated that there is no legal provision allowing payments collected locally on behalf of foreign companies such as Spotify to be netted or offset against remittances.

Such practices violate Bangladesh's foreign exchange regulations and may constitute money laundering. If any institution is found to be engaging in such activities, the matter will be investigated and appropriate legal action will be taken.

Amar Pay’s Response

To obtain comments on these allegations, Asia Post contacted both Amar Pay and SimPaisa.

On June 17, written questions were emailed to Amar Pay's founder and Managing Director, A.M. Ishtiaq Sarwar. The same questions were also emailed to Yasir Pasha, Global CEO of SimPaisa, who is based overseas.

Yasir Pasha did not respond to the email.

On June 29, Ishtiaq replied by email, advising the reporter to contact Sanjana Farid, SimPaisa’s representative.

The reporter subsequently spoke by phone with Sanjana Farid, Chief Executive of Amar Pay and SimPaisa’s representative in Bangladesh, on June 30.

During the conversation, she denied the allegations against Amar Pay and SimPaisa and requested that the questions be sent by email.

The questions were emailed to her later that day, and a reminder was sent via text message the following day.

However, no response had been received by the time this report was filing.