Bangladesh Bank signs deal with 10 states to combat money laundering

Prime Minister Sheikh Hasina Wednesday said the Bangladesh Bank (BB) has signed an agreement with financial intelligence units of 10 countries to share information related to money laundering in a bid to combat such crimes.

The prime minister informed it to the Jatiyo Sangsad (JS) in a tabled question, raised by lawmaker Mohammad Imazuddin Pramanik of Naogaon.

She said her government has taken steps to bring some changes in two acts - Money Laundering Prevention Act 2009 and Anti Terrorism Act 2009 - to make anti-money laundering system more effective.

Sheikh Hasina assured the JS of scrutinising the wealth statements of government officials, if it is necessary to curb corruption in the administration. "Wealth statements of the government officials have already been collected. Their accounts have been preserved under the respective authorities."

She said another measure has been taken to curb official corruption by launching e-tendering system. Initially Local Government Engineering Department, Roads and Highways Department, Water Development Board and Rural Electrification Board have been brought under the system. All offices would be brought under the system by the end of the year.

The government has also taken initiatives to strengthen the Anti-Corruption Commission (ACC) through ensuring its transparency and accountability. All necessary administrative, financial and legal assistance have been extended to the organisation to deal with the corrupt elements as her government is committed to curb corruption.

"With this objective in mind, a bill named Anti-Corruption Commission (amendment) Act 2011 has been placed in the House," she said, claiming that the commission is performing its activities independently.

However, she said the government has no plan to set up a separate ministry to curb corruption.

Source: FE

Bangladesh: Amended AML Act Incorporates Stringent Measures

Nazmul Ahsan

The Anti-Money Laundering Act, 2011 has been made more stringent, by expanding the purview of the reporting agencies and widening the areas of suspected transactions and predicating offences.

With the change in the existing definition of "money laundering" under the act, the maximum term of imprisonment for the offence has been increased from seven years to 12 years and the minimum, from current six months to four years under the proposed new act.

The amendment to the Anti-Money Laundering Act (AMLA) was approved last Monday last at a cabinet meeting. Prime Minister Sheikh Hasina presided over the meeting.

The Act, with the proposed amendments, will be placed now at the parliament as a Bill, sources in the Ministry of Finance (MoF) said.

According to the approved act, 11 types of financial and social business entities have to report now to Bangladesh Bank (BB) regularly on their "suspected transactions."

The newly included reporting agencies which came within the ambit of mandatory reporting are-stock dealers and stock brokers, portfolio managers, security custodians, asset managers, non-profit organisations, non-government organisations, cooperatives, real estate companies, jewel and metal businessmen, trust companies, lawyers and accountants.

Presently, only banks, insurance companies, money changers and financial institutions are liable to report to the BB on any suspected transaction.

"Many financial institutions including brokerage houses and cooperatives are now the safe havens for black money and money earned through illegal means. This should be stopped," a MoF official said.

"A number of global watchdog organisations on anti-money laundering have long been putting pressure on us to bring such financial institutions under the mandatory reporting to the central bank," he added.

The new proposed act has brought under its operational jurisdiction politically exposed persons, special judges appointed under Criminal Law Amendment Act, 1958, terror financing, any wealth obtained or possessed through corruption and money siphoned off to foreign countries.

It has included six types of offences with the existing ones to be treated as predicated offences.

The new areas are-smuggling, laundering currency, robbery, human trafficking and dowry.

The existing predicated offences have also been included in the AMLA. These are: trafficking of women and children, corruption and bribery, faking currency, faking land document, extortion, forgery, illegal trade of arms, illegal trade of narcotics, abduction and murder.

Officials in the MoF said the move to upgrade the existing anti-money laundering act, 2009 has been taken to comply with the international standard.

He said, Financial Action Task Force (FATF), an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, said in its report in 2010, Bangladesh is still non-compliant in at least 10 key areas for attaining international standard.

The FATF has strongly recommended to the government to make the current AMLA stringent to attain the global standard.

Accordingly, MoF formed a 12-member National Coordination Committee (NCC), headed by Finance Minister AMA Muhith, to update the existing anti-money laundering act.

"The US Justice Department has extended its technical cooperation for updating the act, which is now one of the global standard anti-money laundering acts," a top MoF official told the FE.

Source: FE

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

Bangladesh: Nat'l committee formed to finalise AML Action Plan

The Ministry of Finance (MoF) formed Sunday a 12-member National Coordination Committee (NCC) to finalise an action plan to prevent the money laundering and terrorist financing in accordance with the recommendations made by international anti-money laundering institutions.

Finance Minister AMA Muhith has been made convener of the NCC. Other members of the committee include the Bangladesh Bank governor, the attorney general, and the secretaries of finance division, banking division and ministries of home, foreign and law, official sources said.

The first meeting of the newly formed NCC will be held shortly to identify the loopholes in the existing laws to prevent money laundering and terrorist financing, a top MoF official said.

The NCC will complete their job within the next two to three months, he said.

The move has been taken in the backdrop of a report, submitted recently by Financial Action Task Force (FATF). The FATF in its report said Bangladesh has not yet attained the international standard in containing money laundering and terrorist financing activities.

The FATF, an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, in its report said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard, an official said.

Besides the FATF, Asia Pacific Group (APG) on Money Laundering, in their recently concluded Mutual Evaluation Report also expressed dissatisfaction over the poor level of legislation to curb money laundering crimes in the Bangladesh, he said further.

The international watchdog groups, including FATF, have asked the government to attain the international standard in combating financial crimes by October this year or at least submit the government's action plan to them before its plenary secession due in October this year, an official in the BB said.

Source: The Financial Express

Bangladesh cabinet nod for death penalty for financing terrorism

The Bangladesh cabinet on Monday approved a proposed amendment to current anti-terrorism legislation, which, if passed by parliament, will make the financing of terrorism punishable by death. 

Under the existing law, financing terrorism carries a maximum sentence of 20 years in prison. 

'The government has decided to amend the previous legislation to strengthen the country's legal framework to stop terrorism,' Abul Kalam Azad, the prime minister's spokesman, told a press conference after the cabinet meeting. 

Parliament will discuss the proposed amendment in January, which will give greater power to Bangladesh Bank, the banking regulator, to freeze any accounts over suspicious transactions. 

Under the current Anti-Terrorism Act of 2009, killing, possessing illegal arms and ammunition, abduction, creating panic and using Bangladesh to carry out terrorist activities in or outside the country, are punishable by death. 

The government believes sources of terrorism funding need to stop through stringent provisions in the law, a Home Ministry official said. 

Source: M & G

Khaleda Zia''s younger son goes on trial for money laundering

Arafat Rahman Koko, the younger son of former Bangladesh prime minister Khaleda Zia, went on trial today in a graft case for allegedly laundering Tk 23 crore.

The trial of Koko, who is in Bangkok for medical treatment since July 2008, and Ismail Hossain Saimon, son of former shipping minister Akbar Hossain, began today for alleged money laundering Taka 23 crore, the Star online reported.

Koko and Saimon were indicted for money laundering on November 30 last year.

Justice Mohammad Mozammel Hossain of Special Judge''s Court-3 recorded the statement of complainant Abu Sayeed, deputy director of Anti-Corruption Commission (ACC), the report said.

Hossain had framed the charges against the duo in their absence and said the trial would continue in their absence.

The anti-graft body has accused them of siphoning off money from China Harbour Engineering Company Ltd and Siemens for helping them win government contracts.

China Harbour got a Taka 351 crore contract to set up New Mooring Container Terminal and Siemens a Taka 239 crore contract to supply and install equipment for Teletalk, the state-owned mobile phone operator.

Koko, who was arrested in September 2007, on graft charges and paroled for treatment abroad in July the following year, is now in Bangkok.

Saimon has been on the run since the Anti-corruption Commission filed the money-laundering case against him and Koko on March 17, 2009.

A Bangladeshi court yesterday rejected a petition of Tarique Rahman, Koko''s elder brother, seeking relief in a money-laundering case.

Bangladesh''s Anti-corruption Commission (ACC) on Octobe 26, 2009, filed the case with a Dhaka court against Tarique and his business partner Giasuddin Al Mamun on charges of siphoning of Taka 204.1 million to Singapore between 2003 and 2007.

Bangladesh''s Appellate Division upheld the High Court verdict rejecting a petition challenging the money-laundering case against Tarique, the bdnews24 online reported.

Tarique, the senior vice-chairman of BNP, has 14 cases filed against him on various charges. He has been undergoing treatment in the UK. PTI

Source: MSN News

Terror-financing should receive a sharper focus

THE government's formation of a 10-member high-powered committee styled as National Committee on Anti-money Laundering -- Combating Terrorist Financing reflects its desire to provide an organised basis to the fight against illegal international monetary transactions and financing of terrorist networks. So far as we understand, the national committee will principally act as a policy-making body while a working committee consisting of representatives from the similar ministries and bodies as are represented on the NC will assist the latter on the implementation side. Additionally, the new body is to help recover money stashed away abroad. There are thus three functions before the committees: one, combating money laundering; two, fighting terror financing; and three, bringing back unearned incomes of Bangladeshi citizens kept in foreign financial institutions.

The new arrangements envisage a committee within a committee -- rather a wheel within a wheel. That way there is a built-in element of coordination between the two committees. So far so good, but what we believe to be necessary is to have a nodal agency or a taskforce looking into terror financing as an integral part of the counter terrorism strategy. The committee set-up being torn between three agendas there is likely to be a diffusion of focus on terrorist funding. That's why we are asking for a separate agency to look into the phenomenon of financing terrorism.

Let's not forget that while changes in the anti-money laundering act have been followed by remittances soaring through the formal banking channels those by themselves may not prove enough to checkmate clandestine use of money by extremist quarters. We have heard allegations of outlawed extremist groups operating under different labels and some NGOs and banks linked to suspicious banking operations with Bangladesh Bank looking into them. They are yet to be extricated from the oxygen of support they receive from recalcitrant quarters as is evidenced by the discovery of grenades and arms caches.

The anti-money laundering thrust is understandable though, as the money transacted through informal channels like hundi that is not recorded through the banking system is susceptible to use for subversive activities including trafficking in weapons and terrorist activities. While the national committee addresses the question of collaborating with foreign governments and international financial institutions and banks to secure their cooperation in fighting money laundering and flight of capital, a special cell is needed to tackle terror financing in a focused and intensive way.

http://www.thedailystar.net/story.php?nid=25361

E-transactions open window for money laundering

Staff Reporter

Internet banking, international credit card and mobile phone recharge cards emerged as new windows of money laundering with the expansion of technology-based transactions in the country.

A meeting of the Anti-Money Laundering Task Force at Bangladesh Bank yesterday advised the commercial banks to remain alert to prevent money laundering through the new windows, meeting sources said.

Bangladesh Bank executive director Abul Quashem chaired the task force meeting which was attended by representatives from the Task Force member-bodies including ministries of Finance, Home and Commerce, National Board of Revenue (NBR), commercial banks, intelligence agencies and police were present.

As for money laundering through international credit cards, holders are supposed to deposit the same amount of foreign currencies to their local bank accounts against what they had spent abroad.

But some of them were depositing the amount through purchasing the foreign currencies from the kerb market, according to allegations raised at the meeting.

Meeting sources said the meeting also decided to introduce a uniform (know-your-customer) KYC form to make account opening and operating easy for the bank clients.

Commercial banks alleged at the meeting that their clients were facing difficulties to comply with the KYC due to different types of forms being used by different banks. The central bank will send a draft of uniform KYC form to the commercial banks for their opinion in this regard.

http://nation.ittefaq.com/issues/2007/10/29/news0605.htm

Korea: ACC sits on $7.5m money laundering evidence

A Korean citizen claims that an Anti-Corruption Commission (ACC) official has stopped proceedings of filing a case regarding laundering of about $7.5 million although National Coordination Committee (NCC) to combat serious crime and corruption has evidence.

Ok-Kyung Oh in a press conference at Jatiya Press Club yesterday said a taskforce team this year found evidence of laundering the amount to South Korea by her former husband Bo- Sun Park, chairman of TaeHung Packaging (BD) Ltd, and forwarded the matter to ACC for further action.

She alleged ACC did not make any probe into the matter for mysterious reasons except changing the enquiry officer three times.

Ok-Kyung Oh, who claims to have been removed from the post of managing director of the same company illegally in 2004, alleges that ACC Commissioner Abul Hasan Manzur Mannan is holding back the file regarding filing of the case.

"If an ACC commissioner is holding back a file like this, then who's going to fight against corruption?" Ok-Kyung Oh asks.

"If ACC cannot file this case even after having such documents, the commission cannot file any case regarding corruption," she adds.

Contacted, Mannan told The Daily Star, "The allegation is not true. May be she has misunderstood me. She might have said that Customs Bond Commissionerate did not scrutinise her allegations earlier."

On delay in ACC action regarding the matter, he said, "The officer entrusted with enquiry earlier collected all the information but did not take those into cognisance, especially those technically important for this case."

"I don't know why the officer did that," he said, adding, "As we have understood all aspects of the matter by now, it would be disposed of soon."

Mentioning the recent taskforce report regarding the matter, Ok-Kyung Oh told journalists $7.5 million amounts to Tk 52.35 crore was laundered from 2000 till 2007 through over invoice.

She also complains that two former committees formed by the Bangladesh Bank and Customs Bond Commissionerate could not conduct impartial investigation and were influenced by former communications minister Nazmul Huda and his wife Sigma Huda during tenure of the four-party alliance government.

Source: The Daily Star

Bangladesh: Proper application of law to resist money laundering underscored

Speakers at an anti-money-laundering workshop opined that the incidents of money laundering were taking place because of use and flow of illegal money.

Urging all officials concerned including bankers to become more active in imposition anti money laundering law, they said it is possible to resist corruption of the law concerned is applied appositely and efficiently.

Deputy Commissioner of the district Mohammad Nurul Amin as chief guest delivered his speech at the function on "Anti Money Launderign Affairs Workshop' held on Saturday (Jan 19) at the auditorium of Rangamati Hill District Council, AKM Harunur Rashid, Senior Vice President of Islami Bank Bangladesh Limited presided over the daylong workshop.

Deputy Director Mohammed Ibrahim Bhuiyan, Assistant Director Asim Kumar Chwodhury of Bangladesh Bank, Mohammed Rafiqul Islam, Senior Vice President of Islami Bank Training and Research Academy, Mohammed Saleh Uddin, Deputy Post Master General as special guest spoke at the function organised by Rangamati Branch, Islami Bank Bangladesh Limited.

The anti-money laundering law is being imposed effectively since January 11, 2007 though the act concerned was enacted in 2002, the speakers said.

The money laundering has a covered destructive impact on economy, safety and social situation of the country and it attracts criminals including black marketers, drug dealers, terrorists and illegal arms traders to commit crimes in the society, they added.

Besides, Mohammed Arifur Rahman, Manager, Mohammed Refayet Hossain, Senior officer and Mohammed Akter Uj Jaman, investment officer of the Islami Bank Rangamati branch addressed here.

A total of 46 officers from 36 branches of 8 different banks working at 10 Upazilas of the district took part at the workshop, a press release signed by Md, Arifur Rahman, Manager, Rangamati branch said.

http://nation.ittefaq.com/issues/2008/01/24/news0924.htm

Bangladesh Central Bank Developing KYC Form To Combat Illegal Transfers

October 21, 2007 12:44 p.m. EST

Siddique Islam - AHN South Asia Correspondent
Dhaka, Bangladesh (AHN) - The Bangladesh Bank (BB), the country's central bank, will introduce an identical "Know Your Customer (KYC)" form for commercial banks to help combat illegal fund transfers.

"We are now working to introduce such form to collect similar information from all banks that will also help strengthen our monitoring system," a senior bank official told AHN in Dhaka.

Currently, banks are using different types of forms for preparing KYC profiles on the basis of information, provided by the account holders, to assess financial risk. However, a six-member committee, headed by Deputy General Manager of the Anti-Money Laundering Department of the BB Swapan Kumar Biswas, is working on a unified, standardized form.

The central bank earlier instructed the banks to maintain 'the transaction profile method' properly for opening of any accounts under KYC system to check suspicious transactions. Under the existing Anti-Money Laundering Act, banks are required to inform the Anti-Money Laundering Department of the central bank if it detects any suspicious transactions.

http://www.allheadlinenews.com/articles/7008898685

BB rolls out directives for banks to counter money laundering

Rejaul Karim Byron

The central bank yesterday asked commercial banks and financial institutions to build a system to prevent and identify terror financing and transactions.

Bangladesh Bank also spelled out a series of directives for insurance companies and moneychangers separately in line with the two new ordinances designed to counter money-laundering and terror financing.

The central bank sent out the directives in letters to the chief executives of the organisations.

Commercial banks and financial institutions will no longer be able to open anonymous and fictitious accounts. They will have to gather and maintain adequate information about sources of money and authentic beneficiary, according to the BB.

The banks and financial institutions will have to identify the possible risks in providing technology-based services to distant clients living in foreign countries.

All the directives will also be applicable to foreign branches or subsidiaries of the organisations.

If any suspicious transaction is spotted, it will have to be reported to the central bank.

Bangladesh Bank further asked all organisations to find ways of identifying the transactions carried out for terrorist activities through the banking channel.

The central bank for the first time rolled out the directives on anti-money laundering and terror financing prevention to insurers and moneychangers.

The moneychangers will have to gather and maintain adequate information about their clients for at least five years. They will have to report to the central bank if they find any suspicious financial transaction.

The insurers will also have to follow the same directives made by the central bank.

In addition, the insurance companies will have to preserve details about policyholders, policy closure, maturity and withdrawal for at least five years.

The caretaker government has recently passed a new anti-money laundering act, scrapping the previous law as part of a global fight against militant financing. Also, the government enacted a new law to prevent terror financing.

The central bank said the commercial banks, financial institutions, insurance companies and moneychangers will have to play a responsible role in implementing the directives.

The central bank also asked the organisations to train their employees on the two laws.

Source: The Daily Star

Bangladesh: SIBL holds workshop on Anti-money laundering

A workshop on 'Anti-Money Laundering' organised by training institute of Social Investment Bank Ltd (SIBL) was held on Jan 14, 2008 at bank's Head Office in Dhaka. Thirty-five officers from different branches and Head Office attended the workshop.

SIBL Chairman Abdul Awal Patwary inaugurated the workshop as the chief guest while Managing Director K M Ashaduzzaman and Deputy Managing Director Abu Sadek Md Sohel were present as special guests in the opening ceremony of the workshop.

The chairman called upon the participants to work hard with honesty and loyalty for improvement of the institution. Managing Director K M Ashaduzzaman emphasized that training has no alternative to build career in banking profession. Deputy Managing Director Md. Abu Sadek Md Sohel asked SIBL officers to equip themselves with proper knowledge to guard against money laundering. Md. Akhtar Hussain, Principal of SIBL Training Institute and other senior executives and officers were present in the inaugural ceremony.

http://nation.ittefaq.com/issues/2008/01/16/news0346.htm