Guidelines for trade-based money laundering on cards

Staff Correspondent

22 May, 2019 12:00 AM printer

Bangladesh Bank (BB) is developing guidelines on money laundering through trade financing in order to  prevent and combat capital flight as well as illicit financial flows, said a deputy governor of the central bank.

The central bank came up with the move as the government is trying to strengthen its supervision on trade financing as the global financial sector is experiencing huge indirect money laundering, said BB Deputy Governor SM Moniruzzaman.

The BB Deputy Governor disclosed the information while addressing a workshop titled ‘Addressing Trade-based Money Laundering in Bangladesh’ at BIBM head office in the capital on Monday.

 The central bank, the deputy governor said, have already taken some stringent measures against illegal capital flight by forming a task force on illegal laundering of credit.

Deputy Governor also urged the bankers to develop intra-banks database of letter of credit while addressing the workshop organised by Bangladesh Institute of Bank Management (BIBM) as the chief guest.

BIBM Training Director Shah Mohammad Ahsan Habib made the welcome address and stressed the need for more coordination among regulatory institutions in financial sector to combat the money laundering menace.

Pubali Bank former Managing Director Helal Ahmed Chowdhury, Bangladesh Bank former Executive Director Yasin Ali, Trust Bank Managing Director Faruq Moinuddin and BB Deputy General Manager Anisur Rahman were present on the occasion.

Dhaka University Prof Barkat-e- Khuda claimed the country’s banking sector lacks of technology and human resources to protect indirect capital flight.

Prof Khuda also recommended for developing a special system where all financial institutes would be intra-connected to monitor the money laundering indirectly.

Pubali Bank former Managing Director Helal Ahmed Chowdhury said central banks have to strengthen supervision to the authorized dealer branches of the banks to bring transparency in foreign transactions.

The eminent banker also recommended on knowledge sharing among young professionals on trade financing in affiliation with foreign agency.

BB former Executive Director Prof Yasin Ali said the banks should focus on preparing credit report sincerely alongside of developing database of customers who open letter of credit.


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