BB alerts banks on terror financing

The central bank has asked the commercial 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 directive was given at an emergency meeting of the chief executive officers (CEOs) and CAMLCOs (chief anti-money laundering compliance officials) of the banks, held at the central bank headquarters in Dhaka Tuesday with Deputy Governor of Bangladesh Bank (BB) Abu Hena Mohammad Razee Hassan in the chair.
As part of the measures, the CEOs and Managing Directors of the commercial banks will have to send cautionary messages to their respective branches across the country by February 11 to take action in this regard.
"The CEOs and MDs will have to send the letters to their respective branches within the stipulated timeframe for taking cautionary measures to check terror financing," the BB deputy governor told a group of reporters after the meeting.
He also said the central bank would monitor implementation of such directives through its monitoring cell.
Mr. Razee Hassan, also head of the Bangladesh Financial Intelligence Unit (BFIU), said the central bank might take stern action against any chairman, CEO or MD of any bank if they do not comply with the BB's instructions relating to the anti-money laundering (AML) and combating financing of terrorism (CFT) in line with the existing Anti-Terrorism Act -2009.
The BB's latest directives came against the backdrop of political violence including arson attacks during the ongoing BNP-led 20-party alliance-called non-stop blockade alongside frequent strikes.
The central bank also directed the banks to review the mode of transactions in the risk-prone areas in the last six months. They have to submit reports to the BB in the event of any suspicious transactions.
The banks have also been instructed to submit their revaluation reports on AML and CFT to BFIU of the BB by March 2015.
The BB deputy governor also said the central bank already asked the banks providing mobile financial services (MFS) to comply with KYC (Know Your Customer) rules properly to check money laundering and terror financing activities by using MFS.
"The MFS providers are now creating public awareness about opening mobile banking accounts after complying with KYC rules," he noted.
At the meeting, the bankers have 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 financing of terrorism.
Earlier on February 5 last Prime Minister Sheikh Hasina asked the country's banks and financial institutions to identify the financiers aiding militant and destructive activities and strictly monitor bank transactions to check terror financing.
The Prime Minister also reportedly said the patrons of terrors might use banks while transferring money both at home and abroad.
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