Financial Crime World

Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) Policies in Bangladesh

Importance of Implementing AML/CFT Policies

To prevent money laundering and terrorist financing, businesses in various sectors must establish and maintain internal policies, procedures, and controls. These policies should cover the following key areas:

Key Areas to be Covered by AML/CFT Policies

  • Customer Due Diligence (CDD): Businesses should verify the identity of their customers and assess the risks associated with them.
  • Record Keeping: Businesses must maintain accurate and detailed records of all transactions, including customer information and transaction history.
  • Suspicious Transaction Reporting (STR): Businesses should report any suspicious transactions to the relevant authorities.
  • Internal Controls: Businesses should implement internal controls to ensure that their AML/CFT policies are followed.

Responsibilities of Businesses

Businesses must:

  • Communicate their AML/CFT policies and procedures to employees
  • Designate an AML/CFT compliance officer at the management level
  • Provide regular training to employees on AML/CFT matters
  • Maintain strict confidentiality when handling Suspicious Transaction Reports (STRs)
  • Notify the Bangladesh Financial Intelligence Unit (BFIU) if there are any serious concerns

Role of Regulators in AML/CFT Policies

Regulators play a crucial role in ensuring that businesses comply with AML/CFT policies. In Bangladesh, regulators such as REHAB, Bar Council, ICAB, and Bangladesh Jewelers Association are responsible for:

  • Maintaining strict confidentiality when handling STRs
  • Notifying the BFIU if there are any serious concerns

Implementation of AML/CFT Policies

The document highlights the importance of implementing AML/CFT policies and procedures to prevent money laundering and terrorist financing. Key points from the document include:

  • Independent audits should be carried out to test compliance with internal policies, procedures, and controls
  • Businesses should put in place screening procedures to ensure high standards in the recruitment process