Friday, September 24, 2010

http://www.thedailystar.net/newDesign/news-details.php?nid=155686

The government will upgrade money laundering prevention act and anti-terrorism act to international standards by 2011. It will also identify money laundering and terror financing risks by September 2011

Bangladesh has prepared a 20-point action plan to curb money laundering and terror financing. It has set a specific timeline to upgrade some measures, including amendments to laws, to international standards.

The measures will be gradually effective in the period between October 2010 and December 2011 to meet the conditions of Financial Action Task Force (FATF), the world's lone anti-money laundering organisation.

Bangladesh will send the action plan to FATF's Regional Review Group (RRG) this month, finance ministry officials said.

The government will make a national anti-money laundering strategy by March 2011, and prepare a vulnerability assessment report by September 2011 to identify money laundering and terror financing risks.

The government will also amend the money laundering prevention and anti-terrorism laws to upgrade those to international standards by December 2011.

The amendment will include extending the scope of offences, criminalising the acquisition, possession or use of property, and the concealment or disguise with respect to ownership of property.

Though a huge amount of money is laundered from Bangladesh, the country fails to repatriate any amount, and does not get any international cooperation due to the absence of necessary laws in this regard.

A legislation to meet the requirements will be enacted by December 2011, while rules and procedures will be set by August 2012.

Bangladesh's non-profit organisation (NPO) sector has 60,000 registered societies, associations, clubs and companies limited by guarantee and foundation.

But there is not any overall strategy to identify and address money laundering and the risks of terror financing in these NPOs.

The government will prepare a vulnerability assessment on the NPOs by September next year.

Besides, six sectors, including stockmarket and non-government organisations, will have to regularly send reports on suspected transactions with them to Bangladesh Bank. The central bank will issue a circular in this regard by October.

"Bangladesh faces significant risks of money laundering and some risks of terrorism financing," the RRG said in a report sent to the government early this month.

The finance ministry officials said Bangladesh will face problems in international transactions if the country fails to meet the conditions set by FATF.

They said a high-powered committee headed by the finance minister prepared the action plan, and the ministry's delegation had a meeting with the RRG on the draft of the action plan, in Sydney, Australia on September 15.