Dhaka, Sunday April 17 2011 

http://www.thefinancialexpress-bd.com/more.php?news_id=132677&date=2011-04-17

Bangladesh Bank (BB) has suggested to the government to impose restrictions on cash transactions for selected companies and individual suspects to help contain money laundering and control terrorist financing, official sources said.

As a national strategy to combat terrorist financing and prevent money laundering, the central bank has also suggested to identify unregulated payment or money transfer system by suspected businesses and individuals.

The suggestions have been given in a draft National Strategy for Preventing Money Laundering and Combating Financing of Terrorism, 2011-2013.

The Ministry of Finance (MoF) will place the draft strategy paper to National Coordination Committee (NCC) soon for approval, a high official in the ministry said.

The draft strategy has outlined timeframe to implement the proposed measures and awarded responsibilities to different government and semi-government agencies.

"We will soon convene a meeting of NCC, which is headed by Finance Minister AMA Muhith, to approve the strategy paper, submitted by BB last week," a high official in the MoF said.

He said the government is committed to preparing a national strategy to combat money laundering and control terrorist financing and an action plan to implement the strategy as global watchdogs on combating terrorist financing have been pressing the government to enact the required laws and regulations to prevent the menace.

A top BB official said a limit might be given for the purpose of cash transaction as laundering and siphoning off money take place mostly through cash transaction. The use of financial instruments might be encouraged and made mandatory to a great extent in the National Strategy for Preventing Money Laundering and Combating Financing of Terrorism, he added.

The National Board of Revenue (NBR), Anti-Corruption Commission, banks and financial institutions and Securities and Exchange Commission (SEC) will jointly identify sectors, companies and individuals for imposing restrictions on cash transactions, another BB official said.

"The modalities and mechanism would soon be evolved to identify the suspected companies and individuals and their unregulated payment or money transfer," a high official in the MoF said.

BB in its paper recommended to establish a SAARC FIU (Financial Intelligence Unit) Net to boost regional cooperation in anti-money laundering.

The strategy paper also suggested to get the Membership of Egmont Group, preserve and share information related to cash smuggling, amend foreign exchange regulation act, 1947 and existing cross border declaration system and encourage banks to establish branch and exchanger house abroad.

It strongly suggested to the government to collect personal information of licensed entities amend company act and Trust act in an effort to contain illegal money transfer and siphoning off money from the country.

Earlier in mid 2010, Financial Action Task Force (FATF), an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, in its recent report said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard.

Besides, a recent Mutual Evaluation Report of APG (Asia Pacific Group) on money laundering also expressed reservation over the level of legislation to curb money laundering crimes in Bangladesh.

"We have to finalise the strategy paper latest by next month to help avert any unpleasant public announcement by global watchdog organization, particularly from FATF and APG," a top MoF official told the FE.