BB makes query about delay in adopting money laundering act
Tuesday, 6 November 2007
Shakhawat Hossain
The central bank, handicapped by lack of proper laws to bring back siphoned-off money, has inquired about the delay in adoption of Money Laundering Prevention Act 2007, sources said.
It has made the query as three months have elapsed after a committee, headed by the secretary of the Ministry of Finance (MoF), put forward some corrections in the draft act at a review meeting in early August.
The Bangladesh Bank (BB) has not been able to know the latest position relating to the adoption of the act, which is essential to bring back the smuggled out money, one source said quoting a BB letter sent to the MoF.
A senior MoF official, however, blamed the existing bureaucratic procedures for the unexpected delay saying that the draft was sent for vetting to the Ministry for Law and Parliamentary Affairs on August 13.
The MoF, according to the official, is also disturbed by the slow progress on the enactment of the law, which might cause a delay in the initiative of the present government to bring back the smuggled-out money.
The letter that was sent to the MoF by the central bank money laundering prevention department stated that its Financial Intelligence Unit (FIU) is trying hard to become a member of Egmont Group.
But to become a member of Egmont Group, whose main job is to help its member counties to combat terrorist funding and other financial crimes, it is essential to include 40 recommendations in the draft act as per suggestion by the Financial Action Task Force (FATF), an international body.
Besides, the country needs to adopt 'terrorism financing prevention law' to accommodate nine other recommendations made by the same FATF, added the letter.
A committee comprising officials of Asia Pacific Group on money laundering, the International Monetary Fund (IMF) and the World Bank (WB) will visit in the country next year.
The high-profile committee will firm up Bangladesh's stand on money laundering issue that, according to the BB letter, highlights the importance for adoption of both the laws without any further delay.
A committee under the central bank has prepared the draft of the 'money laundering prevention act 2007' to replace the existing Money Laundering Act 2002.
The draft was sent to the advisory council July last for approval.
Sources said the advisory council instructed the central bank to make corrections to the draft in line with the suggestions by the FATF.
The BB made the correction in August and approached the MoF for completing the procedures for the purpose.
The central bank, handicapped by lack of proper laws to bring back siphoned-off money, has inquired about the delay in adoption of Money Laundering Prevention Act 2007, sources said.
It has made the query as three months have elapsed after a committee, headed by the secretary of the Ministry of Finance (MoF), put forward some corrections in the draft act at a review meeting in early August.
The Bangladesh Bank (BB) has not been able to know the latest position relating to the adoption of the act, which is essential to bring back the smuggled out money, one source said quoting a BB letter sent to the MoF.
A senior MoF official, however, blamed the existing bureaucratic procedures for the unexpected delay saying that the draft was sent for vetting to the Ministry for Law and Parliamentary Affairs on August 13.
The MoF, according to the official, is also disturbed by the slow progress on the enactment of the law, which might cause a delay in the initiative of the present government to bring back the smuggled-out money.
The letter that was sent to the MoF by the central bank money laundering prevention department stated that its Financial Intelligence Unit (FIU) is trying hard to become a member of Egmont Group.
But to become a member of Egmont Group, whose main job is to help its member counties to combat terrorist funding and other financial crimes, it is essential to include 40 recommendations in the draft act as per suggestion by the Financial Action Task Force (FATF), an international body.
Besides, the country needs to adopt 'terrorism financing prevention law' to accommodate nine other recommendations made by the same FATF, added the letter.
A committee comprising officials of Asia Pacific Group on money laundering, the International Monetary Fund (IMF) and the World Bank (WB) will visit in the country next year.
The high-profile committee will firm up Bangladesh's stand on money laundering issue that, according to the BB letter, highlights the importance for adoption of both the laws without any further delay.
A committee under the central bank has prepared the draft of the 'money laundering prevention act 2007' to replace the existing Money Laundering Act 2002.
The draft was sent to the advisory council July last for approval.
Sources said the advisory council instructed the central bank to make corrections to the draft in line with the suggestions by the FATF.
The BB made the correction in August and approached the MoF for completing the procedures for the purpose.