Dhaka given May deadline to address money laundering, terror financing

Siddique Islam Bangladesh has been given until May 2013 to address four deficiencies in its fight against money-laundering and terror-financing to avert black listing by the Financial Action Task Force (FATF), officials said Sunday. The inter-governmental organisation said, Bangladesh needs to address adequately terror financing, establishing and implementing adequate procedures to identify and freeze terrorist assets. It has also asked Bangladesh to ensure an effectively functioning Financial Intelligence Unit; and improving international co-operation. The deadline was set at the FATF meeting held in Paris on February 18-22 after review of the country's latest performance in implementing its commitments, made by the government earlier. Bangladesh sought to work with the FATF and the Asia Pacific Group on Money Laundering (APG) to address its strategic AML/CFT deficiencies. The FATF is an inter-governmental body, whose job is to develop and promote policies, both national and international, to combat money-laundering and terror-financing. A four-member high-powered team, led by head of the Bangladesh Financial Intelligence Unit (BFIU) and Deputy Governor of the Bangladesh Bank (BB) Abu Hena Mohammad Razee Hassan, attended the meeting to inform it about the latest developments on the AML/CFT front, officials added. "We've already taken preparations for addressing these deficiencies within the timeframe, set by the FATF," a senior government official, close to the team, told the FE. He said, the FATF appreciated highly Bangladesh's efforts to address its deficiencies and continue the process of implementing its action plan. He said, the cabinet has approved Anti-Terrorism Act (amendment) in line with the global standard to address adequately terror financing. "We expect that the amendment processes will be completed before May this year," the official said, adding that the central bank has taken a series of measures in this regard. The central bank has appointed a consultant to strengthen efficiencies of the BFIU. Besides, the central bank has installed 'goAML' software for introducing an online system to collect different information including suspicious transaction reports (STRs) and cash transaction reports (CTRs) from banks. The goAML is a standard software system of the United Nations Office on Drugs and Crime (UNODC) available for financial intelligence units to check terror financing and money laundering. "We're now using the software on trial basis," the official said. The central taskforce on anti-money laundering is now working on developing connectivity among the law-enforcing agencies for sharing information relating to AML/CFT. Talking to the FE, another official said, improving international co-operation is a continue process. "The government has enacted the Mutual Legal Assistant in Criminal Matters Act-2012 to ensure international cooperation." "We've plan to apply at the next plenary meeting of FATE International Cooperation Review Group (ICRG) meeting, scheduled to be held in Norway in June 2013 from delisting us from its review," the official said while replying to a query. An on-site supervision will be held after acceptance of the application by the FATE authorities to ensure effectiveness and implementation status, he noted. In October 2010, Bangladesh made a high-level political commitment to work with the FATF and the APG to address its strategic AML/CFT deficiencies. The APG is an international organisation consisting of around 40 members and a number of international and regional observers, including the United Nations, the International Monetary Fund and the World Bank. "Since October 2012, Bangladesh has taken steps towards improving its AML/CFT regime. The cabinet approved the necessary amendments to its CFT legislation and AML/CFT guidance was issued to the capital markets intermediaries," the inter-governmental body said in a document. However, certain strategic AML/CFT deficiencies remain, it noted. "The FATF encourages Bangladesh to address its remaining deficiencies and continue the process of implementing its action plan."