Financial Crime World

International Cooperation on Financial Crimes in Bangladesh: A Key to Preventing Repeat Offences

The Need for International Cooperation

The massive cyber heist that targeted almost $1 billion from the Bangladesh central bank’s account with the New York Federal Reserve highlights the need for international cooperation in preventing and investigating financial crimes.

In February 2016, hackers stole around $81 million of the funds, while another $850 million was blocked by SWIFT, a global messaging system for secure financial transactions. The incident sparked widespread outrage and led to changes in Bangladesh’s banking regulations.

Strengthening International Cooperation

Since then, the country has been working with international partners to strengthen its ability to prevent and respond to cyber attacks on its financial sector. In 2017, Bangladesh signed an agreement with the US Federal Reserve to enhance cooperation and sharing of information on cyber threats.

Addressing Root Causes of Financial Crimes

However, experts say more needs to be done to address the root causes of such crimes and to bring those responsible to justice. “International cooperation is crucial in investigating these types of crimes, but it’s not just about sharing information,” said a former Bangladesh Bank official. “It’s also about implementing effective laws and regulations to prevent these crimes from happening in the first place.”

Improving Anti-Money Laundering Framework

Bangladesh has been working to improve its anti-money laundering and combating the financing of terrorism (AML/CFT) framework, but progress has been slow. In 2020, the country was included on a list of jurisdictions under increased monitoring by the Financial Action Task Force (FATF), an intergovernmental organisation that sets global standards for AML/CFT.

Recommendations for Strengthening Financial Security

To strengthen its financial security, Bangladesh needs to:

  • Improve cybersecurity: Enhance its ability to detect and respond to cyber threats.
  • Enhance international cooperation: Share information on cyber threats, conduct joint investigations, and implement effective laws and regulations to prevent financial crimes.
  • Upgrade AML/CFT framework: Implement FATF recommendations and strengthen its anti-money laundering and combating the financing of terrorism framework.

Support from International Organizations

The International Monetary Fund (IMF) has been working with the Bangladeshi government to strengthen its financial sector and improve its ability to respond to cyber attacks. The IMF has also been providing technical assistance to help Bangladesh upgrade its AML/CFT framework and implement FATF recommendations.

Conclusion

In conclusion, international cooperation is key to preventing repeat offences like the 2016 cyber heist in Bangladesh. While progress has been made in strengthening Bangladesh’s financial security, more needs to be done to address the root causes of such crimes and to bring those responsible to justice. Effective laws and regulations, enhanced cybersecurity, and improved international cooperation are essential for preventing financial crimes and protecting the integrity of the global financial system.