BB guidelines on reporting suspicious transactions soon

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Siddique Islam
The Bangladesh Bank (BB) has planned to introduce guidelines for the commercial banks to report on suspicious transactions (STR) to check illegal fund transfer.
"We have planned to introduce guidelines on reporting suspicious transactions for ensuring accuracy of such statement," a BB senior official told the FE Wednesday.
He also said the central bank may consult with the stakeholders in this connection.
Currently, there is no guideline or parameter for the STR, which mainly depends on bank officials concerned.
Under the panned guidelines, the BB will set some criteria for transactions that must be reported to the concerned department.
The bankers, however, see the BB's plan as a positive move saying that the guidelines will help prepare such report.
"The reporting on such transaction will be easier once the central bank introduces the guidelines," a Managing Director of a private commercial bank told the FE.
Besides, the central bank has asked the commercial banks to be serious about such reporting to curb suspicious deals in the banking system.
The directive came at a meeting of the central taskforce on anti-money laundering held at the conference room of the central bank Wednesday with the Executive Director of the Bangladesh Bank (BB) Abul Quasem in the chair.
The central bank also directed the banks to improve efficiencies of the bank officials, who are directly involved in such function, through providing necessary training.
"The bank will have to report to the central bank if suspicious deals are made," the BB official said, adding that the BB may fine the bank concerned in case of their failure in reporting such incidence in line with the rules and regulations.
Sources, however, said the central bank received only 26 STRs from 48 scheduled banks during February-March period of this year.
Under the Anti-Money Laundering Act, the banks are required to inform the Anti-Money Laundering Department (AMLD) of the central bank instantly if it detects any suspicious transaction.
Under the existing provisions, the central bank may impose penalty ranging from Tk 10,000 to Tk 100,000 if the banks fail to follow the rules and regulations properly.
The central bank has already fined some commercial banks due to non-compliance with the existing rules and regulations.
The meeting also discussed about implementation of some major rules and regulations including cash transaction reports (CTRs), 'know your customer (KYC)' and transaction profile reports.
Some banks are unwilling to submit the STRs because such reports might affect their relations with clients, sources in the banking sector said, adding that the banks often refrain from sending the reports to avoid possible harassment.