Bangladesh

New Documents

The Bangladesh Financial Intelligence Unit published its 2018-19 Annual Report focusing on its anti-money laundering and counterterrorist financing efforts over the year under the Money Laundering Prevention Act, 2012 and Anti-Terrorism Act, 2009.

The Bangladesh Financial Intelligence Unit published guidelines to enable financial institutions to conduct electronic know your customer checks using digital means, such as the Election Commission of Bangladesh’s database that contains identity data with biometric information.

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Enforcement Actions

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Important Facts

  • The U.S. State Department classifies Bangladesh as a jurisdiction of concern. Bangladesh's geographic location - including its seaports and long porous borders with India and Burma - makes it a transshipment point for drugs produced in both the "golden triangle" of Southeast Asia and "golden crescent" of Central Asia. Corruption, fraud, counterfeit money and human trafficking are the principle sources of illicit proceeds. Bangladesh is vulnerable to terrorist financing, including funding that flows through the hawala/hundi system and by cash courier. Other terrorist financing vulnerabilities exist, including the use of non-governmental organizations, charities, counterfeiting and loosely-regulated private banks. The Bangladeshi economy relies heavily on remittances, with remittances through official channels totaling over $15.3 billion in 2015. According to the central bank, a larger number of remittances are now transmitted through the formal sector. However, there remains widespread use of the underground and illegal hawala/hundi alternative remittance systems, which are used to avoid taxes and customs duties.
  • KYC Covered Entities: Banks, finance and investment companies, leasing companies, insurance companies, money changers, money remittance or transfer companies, stock dealers and brokers, portfolio managers, merchant banks, securities custodians, asset managers, non-profit organizations (NPOs), and NGOs
  • STR Covered Entities:  Banks, finance and investment companies, leasing companies, insurance companies, money changers, money remittance or transfer companies, stock dealers and brokers, portfolio managers, merchant banks, securities custodians, asset managers, NPOs and NGOs, dealers of precious metals and stones, trust companies, lawyers, and accountants
  • Enhanced Due Diligence Procedures for PEPs: Foreign: Yes; Domestic: Yes
  • Money Laundering Criminal Prosecutions/Convictions: Prosecutions: N/A; Convictions: 1 (2015)
Source: 2016 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 8 High : 0
Largely Compliant : 26 Substantial : 3
Partially Compliant : 6 Moderate : 4
Non-Compliant : 0 Low : 4

Bangladesh's technical compliance was re-rated in a Aug. 6, 2019 follow-up report

BASEL i

Rank : 38/141
Score : 5.88/10

TRANSPARENCY INTERNATIONAL i

Rank : 146/180
Score : 26/100

Tax Justice Network i

Rank : 54/133
Score : 73/100