Bangladesh Initiatives
Evolution of AML & CFT Regime
Bangladesh has been proactively addressing the challenges posed by money laundering (AML) and the financing of terrorism (CFT) through a series of comprehensive regulatory measures. With a focus on strengthening its financial system’s integrity and resilience, Bangladesh has implemented robust regulations and frameworks to combat illicit financial activities. Bangladesh is the first among the South Asian Countries to formulate Money Laundering Prevention Act in 2002 and establish a separate department for implementing the Act and taking actions in this regard. Thus, the “Anti Money Laundering Department” in Bangladesh Bank (Central Bank of Bangladesh) was established in June 2002. Later on, it was transformed to Bangladesh Financial Intelligence Unit (BFIU) in 25 January, 2012 under the provision of Money Laundering Prevention Act, 2012 and has been bestowed with operational independence.
1. Legal Framework:
Bangladesh is a founding member of the APG since 1997. Signed several international convention including UN Security Council-International Convention for the Suppression of Financing of Terrorism related to Terrorism and Terrorist Financing. National coordination committee (NCC) is the apex body is formed in 2010 for formulation and implementation of policies for combating money laundering and financing of terrorism. The committee, comprises of members of all relevant agencies, is headed by the honorable Finance Minister.
In line with the international standards and initiatives, Money Laundering Prevention Act (MLPA) and Anti-Terrorism Act (ATA) were amended several times.
Bangladesh initiatives are in a row, like:
- Money Laundering Prevention Act, 2002
- Money Laundering Prevention Ordinance, 2008; Anti-Terrorism Ordinance, 2008
- Money Laundering Prevention Act 2009, Anti-Terrorism Act, 2009
- Formed National coordination committee in 2010
- Money Laundering Prevention Act, 2012
- Anti-Terrorism (Amended) Act, 2012
- Achieved Egmont Group Membership in 2013.
- Anti-Terrorism (Amended) Act, 2013
- Anti-Terrorism Rules, 2013
- Money Laundering Prevention (Amended) Act, 2015
- Money Laundering Prevention Rules, 2019
- MoU with 35 countries
- Conduct National Risk Assessment (NRA)
2. Regulatory Authorities:
The Bangladesh Financial Intelligence Unit (BFIU) operates as the central agency for receiving, analyzing, and disseminating instructions and guidelines relating to money laundering and terrorist financing. Under the supervision of the Ministry of Finance, BFIU plays a crucial role in coordinating AML/CFT efforts among regulatory bodies, law enforcement agencies, and financial institutions.
3. International Cooperation:
Bangladesh actively engages in international cooperation initiatives to combat money laundering and terrorist financing. The country is a member of regional and international bodies such as the Asia/Pacific Group on Money Laundering (APG) and the Financial Action Task Force (FATF). Through participation in mutual evaluations, capacity-building programs, and information sharing, Bangladesh aligns its AML/CFT regime with global standards and best practices.
4. Capacity Building and Training
To enhance the effectiveness of AML/CFT measures, Bangladesh prioritizes capacity building and training for relevant stakeholders. Law enforcement agencies, financial institutions, and regulatory authorities regularly participate in workshops, seminars, and training programs focused on AML/CFT compliance, investigation techniques, and risk management strategies. These initiatives contribute to building a skilled workforce capable of combating financial crimes effectively.
Banks operating in Bangladesh are committed to combating money laundering and terrorist financing activities. Through a robust legal framework, stringent regulatory measures, international cooperation, and capacity-building initiatives, Bangladesh aims to safeguard its financial system’s integrity and contribute to global efforts in combating financial crimes. Continued vigilance, collaboration, and innovation are essential to effectively address evolving threats in the realm of AML and CFT.