US suggests separate anti-money laundering act for capital market

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Nazmul Ahsan
The US on Monday asked the government to enact a separate Anti-money laundering Act for capital market and make the existing Money Laundering laws more stringent, a top government official said.
A three-member delegation of US Department of Justice at a meeting with top government officials said the government should be tough in tightening the anti-money laundering and anti-terrorism acts to avert any international negative campaign against Bangladesh.
Fredrick Renold of US Department of Justice led the US team at the talks, held at Bangladesh Bank (BB). Representatives from Prime Minister's Office, Ministry of Finance (MoF), Ministry of Home, BB, Law ministry and Anti-Corruption Commission attended the meeting.
"The US Department of Justice feels a separate anti-money laundering act should be enacted to plug the influx of bad money in the capital market," a top government official, who attended the meeting, said.
"They (US) have asked us to tighten the existing laws dealing with anti-money laundering and anti-terrorism acts," he added.
Officials said the meeting decided to incorporate stringent clauses in the existing Anti-Money Laundering Act with enhancing the punishment for individuals and institutions for money laundering offences.
The US team told the meeting that provision of punishment for individuals and institutions for money laundering is the same and minimum under the existing anti-money laundering laws, which should be more stringent for both categories.
"We are convinced at the US delegate's suggestions. We will place the suggestions to the National Coordination Committee (NCC) on Anti-Money Laundering for consideration," a MoF official told the FE.
He said the issue of enacting separate anti-money laundering law for capital market is time consuming and it might frighten the entire capital market.
"The issue only could be resolved by the NCC", a BB official said.
Insider trading, share manipulation and abundance of bad money in the capital market could be handled if a separate anti money laundering act is enacted for capital market, a BB official said.
He said the BB included six more areas for inclusion as reporting agencies as part of preventing money laundering. The agencies have to report BB regularly on suspicious transaction.
Earlier, Financial Action Task Force (FATF), an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, in its recent report said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard.
Besides, a recent Mutual Evaluation Report of APG (Asia Pacific Group) on money laundering also expressed dissatisfaction over the poor level of legislation to curb money laundering crimes in Bangladesh.
The international watchdog groups, including FATF, have asked the government to attain the international standard in combating financial crimes by the current month or at least submit the government's action plan to them before its plenary session also to be held this month to avert any negative campaigns by international groups against Bangladesh, a BB official said.
Meanwhile, a recent meeting of NCC, which is headed by Finance Minister AMA Muhith, finalized an action plan to attain the global standard in addressing money laundering.
The major areas included in the action plan are bringing amendments to Anti Money Laundering Act 2009 and Terrorist Financing Act, 2009, including the issues of anti-money laundering and terrorist financing in the existing Extradition Act, enacting Mutual Legal Assistance Act and ratifying the UN Convention against Transnational Organised Crime (Palermo Convention) and ratifying the UN Security Council Resolutions, 1267 and 1373.