Bangladesh has finally come out of the Financial Action Task Force's (FATF) 'grey list', meaning it will help the country reduce the costs and time-line of financial transactions with the rest of the world.
"Bangladesh has continuously responded to the international agencies in implementing necessary laws relating to counter-terrorism and anti-money laundering initiatives, for which the country ultimately could come out of the international agencies' surveillance," Finance Minister AMA Muhith said Monday.
"This is a great achievement. Now our businesses would be more competitive as international banks and financial institutions will reduce their cost for doing business with Bangladeshi counterparts," Mr Muhith said at a press briefing held at his Secretariat conference room after a purchase committee meeting.
Efforts including formulation of different laws such as Anti-terrorism Act, 2009, Anti-Terrorism (Amendment) Act, 2013, Money Laundering Prevention Act, 2002,
undertaken by the previous Awami League government, have helped the country come out of the list, the minister said.
He said the danger of the list was that if the country had not responded to the call of the international agencies, it would have entered the black list, which meant a kind of economic sanction, the finance minister said adding: "Most of the banks and financial institutions turned out to be reluctant to do business with Bangladeshi banks and financial institutions."
Bangladesh Bank Governor Atiur Rahman, Bank and Financial Institution Secretary M Aslam Alam and Senior Home Secretary CQK Mostaque Ahmed attended the meeting.
"Bangladesh has achieved the status as a fully compliant country with different conventions and protocols of the United Nations (UN) on money laundering and terror financing, different resolutions of UN Security Council and fully implemented the conditions of FATF (Financial Action Taskforce)," Bank and Finacial Institution Secretary M Aslam Alam said.
Meanwhile, the finance minister said the government would buy or borrow necessary foreign currency from open market or the central bank to construct the Padma Bridge.
He said the fund would be generated from the budget allocations, from where about US$ 2.2 billion would be spent over the next five years.
Mr Muhith said the major expenditure would be needed for the next fiscal year as the construction work of the main bridge and river control would be awarded very soon.
"Four qualified bidders took part in negotiations and three contractors submitted their proposals," he said.
The Communications Ministry is now reviewing the proposals to award the work to the contractor, he said.
Mr Muhith reiterated his position saying, "No graft has taken place in negotiating the Padma Bridge Construction, all were only based on suspicion,"
The World Bank had expressed its intention to come back to the project again, Muhith said adding: "We clearly said no to Wold Bank as they have asked us to re-negotiate the project."
"We will build the bridge from our own funds," the minister said.
Explaining the mode of operation of the foreign currency funds needed for constructing the Padma Bridge, BB Governor Atiur Rahman said the Padma Bridge Project has opened an account with Agrani Bank in this connection.
The government will deposit the necessary funds for the project from budget allocations from where the Agrani Bank will buy foreign currency from open market or borrow from the central bank to give the contractors money, the Governor said.
"The same process will be followed in case of procuring fertiliser or fuel from international market," Mr Atiur said.
In October 2010, the FATF gave Bangladesh time-bound 28 action items needed to bring its anti-money laundering and counter-terrorist financing measures to international standards.
While the country was on the grey list, financial transactions involving the country's businessmen and institutions became complicated and cumbersome due to intense scrutiny.
To facilitate international cooperation, Mutual Legal Assistance on Criminal Matters Act 2012 has been passed, while money laundering and terrorist financing offences have been included in the schedule of the Extradition Act 1974.
The government has formed a national coordination committee to make policies and directives on anti-money laundering and combating finance of terrorism.
To facilitate exchange of information and intelligence, Bangladesh Financial Intelligence Unit (FIU) has signed memoranda of understanding with 16 foreign FIUs and has obtained membership of the Egmont Group, a group of FIUs that meet regularly to collaborate in information exchange, training and expertise sharing.
The government has taken steps to strengthen the FIU and ensure its operational independence.
To enhance inter-agency information and cooperation, 'primary contact points' have been established at 21 ministries, divisions and agencies.
In November last year, a team of the Asia-Pacific Regional Review Group of FATF made a two-day visit to Dhaka to verify the measures taken.
A high official at the finance ministry's banking division said the government has future plans to strengthen its anti-money laundering and counter-terrorist financing measures.
Foremost among the plans is the formulation of a national strategy for 2014-2016 to combat money laundering and terror financing.
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