Designing a Future-Ready Compliance Program to Combat Financial Crime in Bangladesh

A recent live webinar brought together experts from various fields to discuss the importance of financial crime prevention in Bangladesh. The session highlighted the evolving nature of financial crimes and the need for organizations to adapt quickly to prevent illicit activities.

The Pervasive Nature of Financial Crime

According to Refinitiv research, globally, $4 trillion is laundered through the financial system every year, while AML fines totaled $10 billion in 2020. This has led to organizations spending a significant portion of their annual turnover - an average of 3.1% - trying to detect and prevent illicit financial activity within their customer networks.

The Situation in Bangladesh

In Bangladesh, the situation is no different. Financial criminals are leveraging technology to facilitate their illegal activities, putting pressure on regulators, regulated organizations, and solution providers to rapidly adapt. The impact is felt globally in terms of FDI flows and correspondent banking relationships.

Regulatory Guidance from the BFIU

The FATF conducts mutual evaluation reports on countries about their preparedness and provides recommendations in the fight against financial crime. Bangladesh banks play a critical role in fighting the threat of financial crime, and regulatory guidance from the Bangladesh Financial Intelligence Unit (BFIU) is crucial in this regard.

Insights from Industry Leaders

During the webinar, industry leaders from Dutch Bangla Bank Ltd. and BRAC Bank Ltd. shared insights on designing an effective compliance screening program and best practices globally. They emphasized the importance of quality data in providing a holistic view of compliance risks and highlighted red flags that bankers should be careful about.

Key Takeaways

The webinar focused on the following key areas:

Fighting Financial Crime Beyond Compliance: Strengthening the country’s reputation, positioning it strongly as a foreign investment destination, and bringing stability and prosperity to the nation.
Regulatory Measures to Counter Money Laundering: Applicable legislations in Bangladesh and other AML legislations outside the market that regulators could look at.
Designing an Effective Compliance Screening Program: Best practices globally, with a focus on quality data providing a holistic view of compliance risks.
Reviewing Existing Compliance Programs: How often and when to review existing compliance screening programs, highlighting red flags that bankers should be careful about.

Conclusion

The session concluded with a clear understanding of the importance of financial crime prevention in Bangladesh and the need for organizations to adapt quickly to prevent illicit activities. It also emphasized the critical role that banks play in this regard and the importance of regulatory guidance from the BFIU.