Financial Crime World

Bangladesh Fails to Meet Key Requirements in Fight Against Financial Crime

DHAKA, BANGLADESH - A new report has revealed that Bangladesh has failed to meet several key requirements in its fight against financial crime, including money laundering and terrorist financing.

Report Highlights

The country received a rating of “largely compliant” (LC) on 36 out of 40 recommendations from the Financial Action Task Force (FATF), an international organization that works to prevent financial crimes.

Areas for Improvement

Bangladesh’s performance was deemed partially compliant (PC) in two areas:

  • Assessing Risk and Applying a Risk-Based Approach: Bangladesh needs to improve its risk assessment and application of a risk-based approach to combating money laundering and terrorist financing.
  • Transparency and Beneficial Ownership of Legal Persons and Arrangements: The country needs to enhance transparency and beneficial ownership of legal persons and arrangements.

Additionally, Bangladesh was rated non-compliant (NC) on one recommendation regarding:

  • Customer Due Diligence for Designated Non-Financial Businesses and Professions: Bangladesh’s financial institutions need to strengthen customer due diligence requirements for designated non-financial businesses and professions.

Government Response

The Bangladesh government has welcomed the report’s recommendations and pledged to address the areas identified as needing improvement. The government has also announced plans to strengthen its laws and regulations to combat financial crime.

In a statement, the Finance Minister said:

“We recognize the importance of combating financial crime and are committed to implementing the FATF recommendations. We will work closely with international partners to ensure that our laws and regulations are in line with global standards.”

International Implications

Bangladesh’s rating by the FATF has significant implications for the country’s relations with other nations. The report’s findings may impact Bangladesh’s access to international financial markets and its ability to attract foreign investment.

The government has acknowledged these concerns and is working to address them. In a statement, the Finance Minister said:

“We understand that our rating by the FATF may have implications for our access to international financial markets. We are committed to addressing these concerns and ensuring that our laws and regulations meet global standards.”

Conclusion

Bangladesh’s performance in combating financial crime has been deemed largely compliant with FATF recommendations, but there are areas where the country needs to improve. The government has welcomed the report’s findings and pledged to address the identified shortcomings. The international community will be watching closely as Bangladesh works to strengthen its laws and regulations to combat financial crime.