Thrust on legal, social approaches to address money laundering

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FE Report
Speakers at a discussion Wednesday stressed a combination of legal and social approaches and creation of mass awareness among people to effectively prevent money laundering and illegal money transfers for boosting the national economy.
They also underscored the necessity to avoid unnecessary harassment of innocents in the name of money laundering prevention initiatives.
The discussants were speaking at a workshop on "Money laundering prevention ordinance 2008," organized by Bangladesh Enterprise Institute (BEI) at its Gulshan premises in the city. The workshop was divided into two sessions.
The Financial Express Editor AHM Moazzem Hossain moderated a session on 'recent development in anti-money laundering regime,' in the workshop.
Bangladesh Bank (BB) General Manager M Mahfuzur Rahman and Assistant Director Mohammad Abdur Rab jointly presented the keynote paper of the session.
BEI President Farooq Sobhan delivered the concluding remarks in the workshop.
Speaking at the workshop, the FE editor said: "Mere legalistic approach will not be enough to check money laundering."
Socialistic approach along with creation of awareness is also necessary, he added.
Mr Hossain, the editor of the country's lone financial English daily, has pointed out that money laundering takes place unabatedly during asset acquisitions and asset sales.
Echoing the similar view, Standard Chartered Bank's head of legal and compliance Mr Sarwar Chowdhury said: "Unfortunately ours is a cash-based economy."
Cash transactions as high as Tk 1.0 billion take place especially during land or apartment sales outside banks, he added.
Presenting the keynote paper, the BB officials informed the central bank is working to fetch back the money siphoned off through money laundering.
"The BB has already signed memorandums of understanding (MoUs) with Malaysia and Nepal and 20 more MoUs would be signed with other countries including the developed ones to bring back the illegally-transferred money, said Mr Rab.
The central bank is getting international support to bring back the siphoned off money under the United Nations Convention Against Corruption (UNCAC), he said.
An inter-agency taskforce comprising top government officials of different relevant agencies is also working on this particular issue, said the BB official.
Besides, the BB has approached the Egmond Group to get membership to get access to information on the siphoned off money, he added.
Regarding mobile banking, he said the BB is concerned over the mode of this transaction as it might invite terrorist financing, money laundering and facilitate 'hundi.'
A number of initiatives like consumer due diligence, monitoring and appropriate reporting policy could help ease the risks in mobile banking, the BB official added.
Deputy General Manager (DGM) of the Basic Bank Mosharraf Hossain, DGM of the Bangladesh Shilpa Bank (BSB) Narayan Chandra Saha and senior bankers Shafiqul Islam and Jagadish Babu also spoke on the occasion.
The inaugural session was chaired by BEI President Farooq Sobhan while Deputy Governor of Bangladesh Bank Ziaul Hassan Siddiqui attended it as the chief guest.
Former executive director of Bangladesh Bank Nazmul Hasan, Head of Legal and Compliance of Standard Chartered Bank Sarwar Choudhury and General Manager, Anti-Money Laundering Department of Bangladesh Bank, Mahfuzur Rahman presented the other keynote paper.
Ziaul Hassan Siddiqui said banks, insurance companies and other financial institutions should strictly abide by the country's money laundering law. To ensure proper implementation of the law, everyone should understand its meanings exactly, he added.
Money Laundering Ordinance, 2008 was promulgated in the country so that illegal movement of money is stopped completely, Mr. Ziaul Hassan Siddiqui said, adding that money can be taken from one country to another legally. But ill-gotten money is filtered through a series of transactions posing serious threats to a country's economy. So, all the financial institutions, including banks, insurances and money changers, should play significant role in combating illegal transactions of money from the country, he added.