Dhaka, Bangladesh (BBN)- The central bank of Bangladesh has asked the commercial banks to be more careful while opening and maintaining accounts of the domestically influential people, officials said.
Influential people means individuals who are or have been entrusted domestically with prominent public functions, like head of state or government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations, and important political party officials.
The Bangladesh Financial Intelligence Unit (BFIU) of the central bank issued a circular in this connection on Sunday, and asked the chief executives of all scheduled banks to follow the instructions while dealing with these people.
Business relationship with family members or close associates of influential people involves reputational risks similar to those with influential people themselves, the BFIU said in its master circular.
On September 25, 2007, the central bank asked the banks to be more careful while opening and maintaining accounts of the 'politically exposed persons' (PEPs).
PEPs means individuals who are or have been entrusted with prominent public functions by a foreign country, for example heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations, important political party officials.
The 2007 circular mentioned exercising caution in case of foreign influential people only, but the latest circular included both the local and foreign influential people.
“The central bank has instructed the commercial banks to comply with the instructions for operating accounts with both local and foreign influential people to avoid any financial risk,” a senior official of BB told BBN in Dhaka.
The BFIU issued the circular in line with the recommendations of the United Nations Convention against Corruption (UNCAC) and the Financial Action Task Force (FATF).
The FATF is an inter-governmental body whose purpose is development and promotion of policies, both national and international, to combat money laundering and financing of terrorism.
It has already approved 40 recommendations to curb money laundering and terrorist financing, according to the central bankers.
The BB also asked the banks for taking effective measures to comply with rule and regulations of the Anti Money Laundering (AML) and Combating Financing of Terrorism (CFT) issues properly to check illegal fund transferred.
BBN/SSR/AD-29Dec14-1:49 pm (BST)