Bangladesh now robust against illegal capital flows

Bangladesh is now compliant with international standards in anti‐money laundering and counter-terror financing efforts -- a development that will reduce the cost of doing business and help attract foreign direct investment.

“Bangladesh's rating is better than countries like Norway, Sri Lanka and Fiji. To some extent, our position is better than developed countries like Australia,” Abu Hena Mohammad Razee Hassan, deputy governor of Bangladesh Bank, told reporters at a press conference yesterday.

The Asia/Pacific Group (APG) on Money Laundering, which is an autonomous and collaborative international organisation, recognised Bangladesh's achievement after its third round of mutual evaluation assessment on the country's measures to counter money laundering and terror financing.

The evaluation team of assessors composed of APG experts in criminal law, law enforcement and regulatory issues.

The team visited Bangladesh in October last year and placed its report before the members at the group's annual meeting held in the US earlier this month.

“The business community now has a footing to bargain in doing foreign trades, such as charge for confirmation of LCs,” said Hassan, also the head of the Bangladesh Financial Intelligence Unit (BFIU).

The good rating will help the country get foreign direct investment and local firms may also find it beneficial to borrow from abroad at relatively lower interest rates, he said.

In the second round of evaluation conducted in 2009, APG had found that Bangladesh faced significant risks of money laundering and some risks of terrorism.

Since then Bangladesh has improved significantly in tackling money laundering and financing of terrorism, and also amended laws.

The Anti-Corruption Commission has also been strengthened significantly.

The central bank has brought the capital market, real estate sector and non-governmental organisations and so on to the purview of money laundering laws.

A national coordination committee headed by the finance minister is also in place to deal with the matter.

The experts of APG reviewed the institutional framework, the relevant anti‐money laundering and countering terrorist financing laws, regulations, guidelines and other requirements in place that deter money laundering through financial institutions and non-financial businesses and professions. 

The report also examined the capacity and effectiveness of all the systems.

After analysing the findings based on 40 recommendations set by the Financial Action Task Force, APG found that Bangladesh is fully compliant with six recommendations, largely compliant with 20 and partially compliant with 14 recommendations, Hassan said.

Out of the 11 immediate outcomes (IOs) relating to the legal and institutional effectiveness, Bangladesh has been rated substantial on three IOs, moderate on four and low on 3, which is better than countries like Norway, Sri Lanka and Fiji, he said.

Naushad Ali Chowdhury, executive director of BB and deputy head of the BFIU, and Debaprosad Debnath, operational head of BFIU, were present at the briefing.