Dhaka, Bangladesh (BBN)– Bangladesh’s central bank has warned the commercial banks against any negligence in compliance with the anti-money laundering and anti-terror financing rules, in the wake of restive situation.
The warning was issued at a meeting of the chief executive officers (CEOs) and CAMLCOs (chief anti-money laundering compliance officials) of 28 banks, held at the central bank headquarters in the capital Dhaka on Tuesday with Deputy Governor of Bangladesh Bank (BB) Abu Hena Mohammad Razee Hassan in the chair.
The bankers have also been cautioned that no excuses for any negligence and ignorance will be allowed for non-compliance with the existing Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) rules and regulations, meeting sources said.
The central bank also asked instructed the banks to take the highest level of precautionary measures so that no one can use the banking channel for terror financing, both from home and abroad.
As part of the financial security measures, the banks have been asked to form special teams to evaluate the overall compliance status on anti-money laundering and anti-terror financing position in the context of emerging issues, including mobile banking and cyber security.
The central bank also instructed the banks to submit their reevaluation reports on AML-CFT to Bangladesh Financial Intelligence Unit (BFIU) of the central bank by October 2016.
Mr. Razee Hassan, also head of the BFIU, said the central bank might take stern action against any chairman, CEO or MD of any bank if they do not comply with the BB instructions relating to the AML and CFT in line with the existing Anti-Terrorism Act 2009.
The latest directives came following the deadly attack on July 01 by a group of militants at a restaurant in the capital Dhaka where 28 people including 17 foreigners were killed.
Talking to BBN in Dhaka, a BB senior official said the meeting discussed the role of senior management of the banks in ensuring compliance with the risk-management guidelines for them. “We’ll meet other CEOs and CAMLCOs of 28 banks today (Wednesday) on the same issue.”
The bankers were asked to submit suspicious transaction report (STR) and cash transaction report (CTR) to the BFIU of the central bank timely to help curb the money-laundering-and terror-financing offences.
The total number of STR submitted by the reporting agencies was 619 in fiscal 2013-14, which went up to about 700 in 2014-15. The number of STR reported to the central bank was only 175 in 2011-12.
Besides, the central bank asked the bankers to comply with ‘know your customer (KYC)’ provision properly to check illegal fund transfer.
The bankers have also been instructed to check use of fake ID for opening any bank account alongside monitoring the flow of inward remittance from multiple sources for a same person.