Banks asked to apply AML and CFT rules to combat pecuniary crimes

  From Rajshahi

The central bank has asked the commercial banks to take effective measures under the anti-money laundering and anti-terror financing laws to check illegal fund transfer and associated pecuniary offences.

Such strict directive came at a regional conference on Anti-Money Laundering (AML) and Combating Financing of Terrorism (CFT) issues in the country's northwestern city of Rajshahi on Thursday evening.

At the conference, the bankers were asked to submit suspicious transaction report (STR) and cash transaction report (CTR) to the Bangladesh Financial Intelligence Unit (BFIU) of the central bank timely to help curb the money-laundering-and terror-financing offences.

Besides, the central bank asked the bankers to comply with 'know your client (KYC)' provisions properly to check illegal fund transfer.

Bangladesh Bank (BB) Governor Atiur Rahman was chief guest at the conference held at a local hotel with BB Executive Director M Mahfuzur Rahman in the chair.  

"You (bankers) have to ensure the compliance with rules and regulations of the AML/CFT on top priority," the BB Governor said.

The central bank chief noted that money-laundering offence hinders socioeconomic development of the country. "Such risk will increase gradually if the money laundering is not prevented effectively."

"Recently different banks have been fined due to non-compliance with the KYC provisions," Dr. Rahman reminded, adding that the bankers will have to ensure the compliance in order for curbing money laundering.

Currently, the commercial banks are submitting their both STR and CTR to the central bank through using the digital connectivity.

The BB earlier had introduced the online system through installing 'goAML' software for collection of both STR and CTR from the commercial banks and non-bank financial institutions (NBFIs).

The central bank is empowered to impose higher penalty on both the banks and NBFIs in case of their failure in submitting reports related to such surreptitious money transfer.

Under the existing provision, the banks will have to submit CTR on both withdrawal and deposit within the third week of the next month.  

The commercial banks have to report if an amount of Tk 1.0 million and above is deposited or withdrawn in cash from a particular account in a single working day.

Among others, Executive Director of the BB Jinatul Bakeya, Managing Director of the Al Arafah Islami Bank Limited Md Habibur Rahman, Managing Director of Rajshahi Krishi Unnayan Bank (RAKUB) Manjur Ahmed and Deputy General Manager of the BFIU of the central bank AKM Ehsan spoke on the occasion.

Earlier, a delegation of Rajshahi Chamber of Commerce and Industry (RCCI) met with the BB governor and sought cooperation in reducing the interest rates on lending.

They also requested for necessary measures to facilitate the overall business activities in the country's agrarian northern region, where industrialization remains a far-fetched dream.

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