The central bank directed commercial banks to put up a close watch so that no one can use the banking channel for terror financing both at home and abroad.
Such a strict instruction came from a conference of chief anti-money laundering compliance officials, generally known as CAMLCO, of all the banks, held at Rose View Hotel in Sylhet on March 03-05.
"We've asked the banks to monitor especially so that no one can use the banking sector for terror financing," Deputy Governor of Bangladesh Bank (BB) Abu Hena Mohammad Razee Hassan told the FE Monday.
Mr. Razee Hassan, also Head of Bangladesh Financial Intelligence Unit (BFIU) of the BB, said: "We'll issue a guideline for checking money laundering or terror financing through e-commerce."
He said it will be a new area to come under the BFIU monitoring.
"The BFIU will meet the CAMLCOs of non-banking financial institutions (NBFIs) within the next two months for taking effective measures to comply with rules and regulations of the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) issues properly to check illegal fund transfers," the deputy governor noted.
He also said the BIFU will also meet the officials concerned of insurances and NGOs (non-governmental organisations) in preparation for a greater combat against such financial offences.
Officials, however, said the banks have also been instructed to make their board of directors aware about combating the financing of terrorism by the end of 2017.
Besides, the Bangladesh Bank (BB) asked the banks to build up public awareness about combating the financing of terrorism across the country through posturing and initiatives.
At the conference, the financial intelligence unit of the BB explained method, trends and typology so that no one can use the banking sector for terror financing.
As part of the measures, the BFIU has already provided the indicators for identification of terror financing to all banks.
The banks have also been instructed to include minimum one session on combating financing of terrorism at training for implementation of the Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) rules and regulations.
Talking to the FE, a senior official said the BIFU might take stern action against any chairman, chief executive officer or managing director of any bank if they do not go by the BB instructions related to the AML and CFT in line with the existing Anti-Terrorism Act 2009.
He also said the conference also decided that the local offices of foreign commercial banks will have to inform the BFIU prior to termination of any corresponding banking services with local commercial banks.
"We'll update the indicators for identification of terror financing," the official said, without elaborating.
The bankers have also been asked to submit suspicious-transaction report (STR) and cash-transaction report (CTR) to the BFIU of the central bank timely to help curb money laundering and terror financing.
Besides, the central bank had asked the bankers to comply with 'know your customer (KYC)' provisions properly to check illegal fund transfer.
BB Governor Fazle Kabir inaugurated the conference on March 03. More than 100 senior officials and executives of all commercial banks attended the meet.
siddique.islam@gmail.com
