Monitor bank transactions to stop terror financing: PM

Prime Minister (PM) Sheikh Hasina asked Thursday commercial banks and financial institutions to check banking transactions and identify financers of militant and destructive activities, especially those since January 05, 2015.
She also asked banks and financial institutions to strictly monitor transactions to check terror financing.
The PM's instruction came at a meeting with the four divisions of the ministry of finance held at the conference room of the ministry.
 "All bank transactions should closely be monitored and the terror financers should be identified as they have vowed to destroy the very existence of the country through unleashing a reign of terror and militant activities," the PM said.
She said patrons of terrorist and militant activities are still using banks while transferring money at home and abroad.
The PM said financing of terrorist acts in the name of hartal and blockade should be identified and stopped for the greater interest of the economy.
The heads of state-owned commercial banks and representatives of the Bangladesh Bank were present during the meeting.
She said Bangladesh's economy is now better than ever before and by all economic indicators, is advancing at a faster pace.
She said the government has been implementing many fast-track projects to expedite economic development.
The PM said the country would have been a developed country much earlier than other countries in this region had the country been on the track that Bangabandhu had initiated after independence.
She said poverty rate will drop significantly in the next four years. "We will achieve the goal and stamp out extreme poverty from the society."
Hasina also instructed the insurance regulator to spur comprehensive motor insurance in the face of arson of vehicles since January 05.
She said currently most of motor insurance schemes  of nearly 2.2 million vehicles are insured under third-party risk coverage.
In case of the third-party coverage, owners of the motorised vehicles do not get any compensation. Rather affected passengers or passers-by and damaged property get the compensation.
The PM instructed the insurance regulator after the chairman of the Insurance Development and Regulatory Authority (IDRA) spoke on the occasion.
The third-party insurance coverage complies with the existing Motor Act. But the owners of the vehicles prefer it for low rate of yearly premiums.
The third-party premium costs nearly Tk 500 while comprehensive insurance coverage depends on the ad-valorem of the motor vehicles. The vehicles purchased with bank financing complies with  comprehensive coverage.
When contacted, IDRA chairman M Shefaque Ahmed said the authority will take measures to promote comprehensive insurance.
It is often alleged that many non-life insurance companies do not encourage comprehensive motor coverage as the claim ratio of such type of coverage is reportedly high.
Finance Minister AMA Muhith, advisor to the economic affairs Dr Mashiur Rahmnan, principal secretary of the Prime Minister's office Abdus Sobhan Sikder joined the meeting.
Senior secretary of the finance division Mahbub Ahmed, Economic Relations Division secretary Md Mejbahuddin, Internal Resources Division and National Board of Revenue chairman Md Nojibur Rahman and Bank and Financial Institutions Division secretary Dr M Aslam Alam made their respective presentations.
State minister for finance MA Mannan gave a vote of thanks in the meeting.
jasimharoon@yahoo.com