BB to monitor income sources, transactions

As a step to prevent money laundering, banks would be monitoring income sources of senior politicians, bureaucrats, judicial and military officials, and senior officials of international organisations.

Their bank transactions and accounts of their family members and close associates would also be monitored regularly, said Bangladesh Bank in a circular yesterday. 

The central bank ordered banks to monitor “politically exposed” and influential people.

The notice said politically exposed people were “individuals who are or have been entrusted with prominent public functions by a foreign country, for example heads of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state-owned corporations and important political party officials”.

Influential people were “those who are or have been entrusted domestically with prominent public functions, for example head of state or of government, senior politicians, senior government, judicial or military officials, senior executives of state owned corporations, important political party officials".

According to the Bangladesh Bank notice, heads or senior officials of international organisations will refer to those people who are or have been entrusted with key positions by an international organisation. Members of senior management such as directors, deputy directors and members of the board or equivalent were some of the posts.

"Banks will ask for documents from an account holder, no matter who the person is, whenever they find a suspicious transaction," said Mahfuzur Rahman, an executive director of the central bank.

"If the transaction still seems to be suspicious to them, after going through documents, then banks will report the case to the central bank … and we will take measures as per laws.”

He said if a bank failed to report a suspicious transaction and it was later discovered that the person concerned was indeed involved in money laundering, then the bank officials concerned would be fined. However, legal action would be taken against the bank officials concerned if they were found to be involved in the crime.

The UN's anti-money laundering body, Financial Action Task Force (FATF), had urged the government to include these groups of people in its anti-money laundering watch list.

In 2010, the FATF recommended Bangladesh 28 things that needed to be done to bring its anti-money laundering and counter terror financing measures up to international standards.

If Bangladesh did not comply with the recommendations, the country may again be included in the grey list of the FATF, which Bangladesh got out of only in February this year.