Mar.15, 2010

Bangladesh is expected to become a member of the Egmont Group by next year as part of its efforts to bring back millions of dollars, allegedly siphoned off by corrupt politicians and rogue businessmen, said the central bank chief Sunday.

The entry to the Egmont data bank will help the country get access to the information database on anti-money laundering and terrorist financing, Bangladesh Bank Governor Dr Atiur Rahman said.

He was speaking at a press briefing in the city on the eve of the three-day international conference on 'Microfinance Regulations - Who Benefits?' beginning in the city today (Monday).

The Egmont Group of Financial Intelligence Units is an informal international gathering of its kind. The Group, formed in 1995, took its name from the palace in Brussels, where the meeting took place.

Financial intelligence units (FIUs) are national centres collecting information on suspicious or unusual financial activities involving any financial industry or any other entity or professions, required to report on suspicious transactions, money laundering or terrorist financing.

FIUs are normally not law enforcement agencies; their mission is to process and analyse the information received. If any sufficient evidence of unlawful activity is found, the matter is passed on to the public prosecution.

A team, led by Law Minister Shafique Ahmed, recently visited the United States and discussed the issue of Egmont Group membership with the Justice, State and Trade departments. Mr Atiur was a member of the delegation.

The entry to Egmont Group, a club of 117 countries, will help Bangladesh get access to the information database relating to financial crimes and terrorist financing, said Mr Rahman.

"We have sought cooperation from the US officials in getting membership of Egmont Group and they have given a positive signal. They have also imparted training to our officials."

The central bank chief said during the meetings they also talked about the terrorist financing issue.

Mr Rahman said Bangladesh not only applied for the membership, but also enacted laws, termed comprehensive by the US.

"Enactment of laws was a precondition. We have also framed rules and regulations. From Bangladesh Bank, we have also published circulars on the regulations," he said.

The governor said the associate countries of Egmont Group such as Malaysia and Australia would review Bangladesh's progress in this regard. "Our membership depends on their reports."

Mr Rahman said the United States tracked down some amount of money laundered out of Bangladesh. He, however, refused to divulge any further details including the amount of money sent out illegally or whether the money was used in terrorist financing.

The government is continuing efforts to recover millions of siphoned off money from abroad.