BB cautions banks on terror financing

The central bank of Bangladesh asked all commercial banks on Sunday to scrutinise the mode of transactions strictly in their bid to check for terror financing both at home and aboard.

The instruction came at a meeting of the central taskforce on anti-money laundering held at the Bangladesh Bank (BB) headquarters in Dhaka with BB Deputy Governor Abu Hena Mohammad Razee Hassan in the chair.

The banks were also asked to submit suspicious transaction reports (STR) and cash transaction reports (CTR) to the Bangladesh Financial Intelligence Unit (BFIU) of the central bank timely to help curb money laundering and terror financing.

"We've asked the banks to take necessary measures to scrutinise the mode of transactions properly to check terror financing both at home and aboard," Mr. Razee Hassan, also head of the BFIU, told the FE.

He also said the banks and non-banking financial institutions would have to comply with the KYC (Know Your Customer) and STR rules and regulations properly.

"The submission of STRs increased significantly in the recent months following the creation of awareness among the bankers," the deputy governor noted.

Earlier on February 10 last, the BB asked the banks for taking the highest level of precautionary measures so that no one can use the banking channel for terror financing both at home and aboard.

The BB's latest directive came against the backdrop of political violence including arson attacks during the ongoing BNP-led 20-party alliance-called non-stop blockade coupled with frequent general strikes.

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