Financial Crime World

BANGLADESH TIGHTENS GRIP ON ANTI-MONEY LAUNDERING REGULATIONS

DHAKA, BANGLADESH - In a significant move towards maintaining economic stability and integrity, the Government of Bangladesh has taken substantial strides in combating money laundering. Despite facing numerous challenges, authorities have made notable progress in strengthening anti-money laundering (AML) regulations.

Historical Evolution of AML in Bangladesh

Bangladesh’s fight against money laundering gained momentum in 2007 when a caretaker government assumed power with the primary objective of tackling corruption. However, paradoxically, the amount of money laundered through formal banking channels increased during this period. To address this issue, Bangladesh enacted the Money Laundering Prevention Act in 2002 and ratified the United Nations Convention Against Corruption (UNCAC) in 2007.

Key Milestones:

  • Enactment of the Money Laundering Prevention Act: 2002
  • Ratification of UNCAC: 2007

Key AML Laws in Bangladesh

The cornerstone of AML legislation in Bangladesh includes the Money Laundering Prevention Act, UNCAC, and the Money Laundering Prevention Ordinance (MLPO) 2008. These laws establish a robust legal framework for identifying, preventing, and prosecuting money laundering activities within the country.

Key Laws:

  • Money Laundering Prevention Act: Establishes a comprehensive framework for combating money laundering
  • UNCAC: Provides international cooperation in combating corruption and money laundering
  • MLPO 2008: Enhances the legal framework for identifying, preventing, and prosecuting money laundering activities

Government and Regulatory Roles in AML

Bangladesh Bank plays a pivotal role in overseeing the country’s financial system, controlling currency issuance, maintaining economic stability, and fostering employment and income growth. The Anti-Money Laundering Department (AMLD) serves as the national Financial Intelligence Unit, collecting, analyzing, and disseminating financial intelligence related to money laundering and terrorist financing.

Key Roles:

  • Bangladesh Bank: Oversees the country’s financial system and maintains economic stability
  • Anti-Money Laundering Department (AMLD): Collects, analyzes, and disseminates financial intelligence related to money laundering and terrorist financing

Money Laundering Risks in Bangladesh

The underground hawala or “hundi” system remains a primary money laundering risk in Bangladesh. This system is frequently utilized to transfer money and valuables outside of traditional banking channels, especially for repatriating wages earned by Bangladeshi expatriates.

Key Risks:

  • Hawala or “hundi” system: A primary money laundering risk in Bangladesh
  • Transfer of money and valuables: Outside of traditional banking channels

Proposed Solutions

In the ongoing battle against money laundering, Sanction Scanner offers specialized AML compliance software tailored to address the unique challenges faced by businesses operating in Bangladesh. Armed with an in-depth understanding of Bangladesh’s regulatory landscape, Sanction Scanner provides tailored solutions that streamline compliance processes and fortify financial security.

Bangladesh’s efforts to combat money laundering are a crucial step towards maintaining economic stability and integrity. As the country continues to strengthen its AML regulations, it is essential for businesses operating in Bangladesh to remain vigilant and adapt to changing regulations to ensure financial security.