• Financial

Decision to form separate investigation unit to stop money laundering

  • Financial
  • 07 December, 2020 15:18:38

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News Desk: It has been decided to form a separate investigation unit to identify and stop money laundering from the country. The decision was taken at a recent high-level meeting on money laundering prevention. From now on, such units will have to be formed in the regulatory body of each organization in phases. Its members will also work on money laundering and terrorism financing.

The decision has been taken to bring the traffickers under the law. Earlier, a meeting of the Central Task Force on Prevention of Money Laundering and Terrorism was recommended. The money laundering law enforcement agency Bangladesh Financial Intelligence Unit (BFIU) also gave a positive opinion in this regard. The policy of the Financial Action Task Force (FATF), an international organization, also recommended the formation of a separate investigation unit to detect incidents quickly.

This decision has been taken in the light of all this. According to sources, 16 types of institutions in the country have to submit suspicious transaction reports (STRs) and cash transaction reports (CTRs) to BFIU on a regular basis. Such reports are made under the Prevention of Money Laundering and Terrorism Financing Act. This includes all types of banks, financial institutions, insurance companies, money changers.

Apart from this, any organization doing business with registration from Bangladesh Bank, any organization engaged in money transfer work, stock brokers and stock dealers in the stock market are also included in this. There are also portfolio managers and merchant bankers, securities custodians, asset managers, non-profit organizations, non-government organizations, cooperatives, real estate developers. Dealers of various precious metals and stones, trust and company service providers, law firms, notary public, other professionals and accountants are also covered.

These institutions regularly submit reports of substantive transactions or cash transactions to BFIU. Excessive transactions beyond the target of the account will be considered suspicious if the customer cannot give a satisfactory explanation. If cash amount of Rs 10 lakh or more is withdrawn through one or more transactions in a day, it should be reported to BFIU as a cash transaction report. Most of the money is smuggled out of the country or money laundering can happen through these 16 types of organizations.

Separate investigation units have to be formed in the regulatory bodies of these organizations and other investigation agencies. Among the institutions in question, only Bangladesh Bank, commercial and financial institutions have separate investigation units. Apart from this, the Anti-Corruption Commission (ACC), Bangladesh Police, CID and the Customs Intelligence and Investigation Directorate of the National Board of Revenue have separate investigation units. Not in the rest of the institutions.

These include the Bangladesh Securities Exchange Commission (BSEC), the regulatory body of NGOs, the NGO Bureau, the regulatory body of insurance companies, the Insurance Development and Regulatory Authority, the regulatory co-operative directorate of co-operative societies, the regulatory register of companies regulated by companies There is no separate investigation unit. Besides, there is no separate investigation unit in the Narcotics Control Department and National Post Office.

These agencies have also been urged to acquire the capacity to investigate money laundering offenses and to form separate investigation units. The Bangladesh Securities Exchange Commission has taken initiative to form a separate unit to investigate money laundering. At the same time, they have taken steps to increase the capacity of the concerned officials to prevent money laundering. They have not yet filed a case under the Money Laundering Act. Investigations are underway into whether there is any money laundering in the case of capital market related crimes.

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