Money laundering

Author Topic: Money laundering  (Read 289 times)

Offline Shakil Ahmad

  • Sr. Member
  • ****
  • Posts: 374
  • Test
    • View Profile
Money laundering
« on: March 10, 2016, 01:18:33 PM »
Money laundering is the process of transforming the proceeds of crime into ostensibly legitimate money or other assets.  However, in a number of legal and regulatory systems, the term money laundering has become conflated with other forms of financial crime, and sometimes used more generally to include misuse of the financial system (involving things such as securities, digital currencies, credit cards, and traditional currency), including terrorism financing and evasion of international sanctions. Most anti-money laundering laws openly conflate money laundering (which is concerned with source of funds) with terrorism financing (which is concerned with destination of funds) when regulating the financial system.

In Bangladesh, this issue has been dealt with by the Prevention of Money Laundering Act, 2002 (Act No. VII of 2002). In terms of section 2, "Money Laundering means (a) Properties acquired or earned directly or indirectly through illegal means; (b) Illegal transfer, conversion, concealment of location or assistance in the above act of the properties acquired or earned directly or indirectly through legal or illegal means". In this Act, "properties" means movable or immovable properties of any nature and description.
To prevent these Illegal uses of money, the Bangladesh government has introduced the Money Laundering Prevention Act. The Act was last amended in the year 2009 and all the financial institutes are following this act. Till today there are 26 circulars issued by Bangladesh Bank under this act. To prevent money laundering, a banker must do the following:
•   While opening a new account, the account opening form should be duly filled up by all the information of the customer.
•   The KYC must be properly filled.
•   The Transaction Profile (TP) is mandatory for a client to understand his/her transactions. If needed, the TP must be updated at the client's consent.
•   All other necessary papers should be properly collected along with the National ID card.
•   If any suspicious transaction is noticed, the Branch Anti Money Laundering Compliance Officer (BAMLCO) must be notified and accordingly the Suspicious Transaction Report (STR) must be filled out.
•   The cash department should be aware of the transactions. It must be noted if suddenly a big amount of money is deposited in any account. Proper documents are required if any client does this type of transaction.
•   Structuring, over/ under invoicing is another way to do money laundering. The foreign exchange department should look into this matter cautiously.
•   If any account has a transaction over 1 million taka in a single day, it must be reported in a cash transaction report (CTR).
•   All bank officials must go through all the 26 circulars and use them.