Bangladesh Bank gets more powers to curb money laundering

by Rejaul Karim Byron

The proposed anti-money laundering law empowers Bangladesh Bank to cancel licences of organisations that provide false information or conceal facts from the central bank about siphoning of funds.

The cabinet yesterday approved the Money Laundering Prevention Act. Besides banks and other financial institutions, nongovernmental organisations, stock dealers, brokerage houses, asset managers and other organisations must regularly send information about suspected transactions to the central bank, according to the draft of the law.

Under the law, a separate financial intelligence unit will be set up at Bangladesh Bank to monitor and take necessary action against money laundering activities.

If any organisation fails to provide information sought by the central bank, it can fine the agency as high as Tk 5 lakh at a rate of Tk 10,000 a day, according to the law. If any organisation is fined more than thrice in a fiscal year, the central bank can suspend registration or licence of the organisation, any of its branches, service centres, booths and agents, according to the law.

As further punitive measures, the central bank can take action against the licensing authority of the organisation, the law says. Similar punitive action will be taken against any organisation if it fails to comply with any circular issued by the central bank.

If any organisation finds information about any suspicious transaction it can suspend transaction of the account for 30 days, and the timeframe can be extended to six months, if necessary, according to the law.

Source: The Daily Star