Anti Money Laundering Compliance
Anti Money Laundering Act, 2002
In Bangladesh, this issue has been dealt with by the Prevention of Money Laundering Act, 2002 (Act No. VII of 2002). In terms of section 2, “Money Laundering means (a) Properties acquired or earned directly or indirectly through illegal means; (b) Illegal transfer, conversion, concealment of location or assistance in the above act of the properties acquired or earned directly or indirectly through legal or illegal means.” In this Act, “Properties means movable or immovable properties of any nature and description”. To prevent these Illegal uses of money Bangladesh Govt. has introduced the Money Laundering Prevention Act. The Act was last amended in the year 2009 and all the Financial Institutes are following this act. Till today there are 26 Circulars issued by Bangladesh Bank under this act. To prevent Money laundering a banker must do the following:
- While opening a new account, the account opening form should be duly filled up by all the information of the Customer.
- The KYC has to be properly filled up
- The TP (Transaction Profile) is mandatory for a client to understand his/her transactions. If needed, the TP has to be updated at the Client’s consent.
- All other necessary papers should be properly collected along with the Voter ID card.
- If there is any suspicious transaction is notified, the BAMLCO (Branch Anti Money Laundering Compliance Officer) has to be notified and accordingly the STR (Suspicious Transaction Report) reporting has to be done.
- The Cash department should be aware of the Transactions. It has to be noted if suddenly a big amount of money is deposited in any account. Proper documents will be required if any Client does this type of transaction.
- Structuring, over/ under Invoicing is another way to do Money Laundering. The Foreign Exchange Department should look into this matter cautiously.
- If in any account there is a transaction exceeding 7.00 lac in a single day that has to be reported as CTR (cash Transaction report)
- All the Bank Officials must go through all the 26 Circulars and must use in doing the Banking.
Financial Sanctions and Money Laundering
By agreeing to these Conditions you are confirming that:
- You are aware of the existence of certain Bangladesh Laws and international sanctions which prohibit the free movement of funds, goods and services to and from certain designated regimes, entities and individuals. Further information on these sanctions is available in the MONEY LAUNDERING Content.
- You are aware that, in addition. Certain laws, acts, money laundering rules and policies of foreign governments and their agencies, whether or not having the force of law, may affect transactions on your Account.
We reserve the discretion to refuse to handle payments if we reasonably believe that by handling the payment we might breach a Bangladesh banking Law or international sanction or money laundering rule.