The Bangladesh Financial Intelligence Unit (BFIU) has frozen nearly 300 bank accounts since August 5 as part of an intensified effort to combat money laundering. Significant sums of money are involved, according to officials, who noted that this move forms part of a broader initiative aimed at identifying and halting the illegal outflow of funds from the country. Sources at the central bank’s financial intelligence division revealed that the ongoing investigation is focused on tracing funds laundered abroad. They said the freezing of these accounts is intended to disrupt illicit activities and protect the financial system from further harm. As a result of the seizures, some 100 legal cases have been filed. BFIU orders to freeze accounts of Union Bank MD Mokammel The BFIU has said that, if financial embezzlement is proven in court, the seized funds will be transferred to the Bangladesh Bank’s treasury. However, should the allegations be dismissed, the accounts will be unfrozen and the funds returned to their rightful holders. The central bank, working closely with the task force and the BFIU, is optimistic about the recovery of stolen assets. They regard this collaborative effort as a positive step towards retrieving illicitly transferred funds and preventing future financial crimes. Authorities are also committed to tightening regulatory oversight as the investigation progresses. These measures aim to curb money laundering and bolster the country’s financial integrity. A recent report by Transparency International Bangladesh (TIB) revealed that approximately Tk 26,400 crore (USD 3.1 billion) is illicitly sent out of Bangladesh every year. Hundi, over-invoicing, under-invoicing, and trade mis-invoicing have been identified as the primary techniques for laundering money. Shahrear Ahamed, an Associate Member of the Institute of Chartered Accountants of Bangladesh (ICAB), highlighted in a 10 March 2024 article that the existing regulatory framework imposed on fintech companies has effectively curbed money laundering and the financing of terrorism. However, as the fintech sector evolves, so do the risks of emerging fraudulent activities. He said that fintech organisations, particularly their anti-money laundering departments, must implement prevention and mitigation strategies. With consistent monitoring and updates to current policies and guidelines, the mobile financial services (MFS) industry could propel Bangladesh to new levels of financial transparency and security.

A bank account holder can withdraw cash up to two lakh taka a day for this week given the current security situation, according to a Bangladesh Bank circular. The central bank issued the instruction to the MDs of all commercial banks through SMS on Saturday. It will be effective from Sunday, the first working day of the week. Earlier on Thursday the maximum cash withdrawal limit was set at one lakh taka.    Read more: Bangladesh Bank Governor Abdur Rouf resigns However, businesspeople can draw larger amount of cash for payment of salaries of employees ensuring security on their own, said the circular. The same is applicable for the expatriates. The central bank also asked banks to supervise that a person cannot withdraw money from multiple branches of banks in a day. This directive should be followed especially in the case of key political leaders. On Thursday, the Bangladesh Financial Intelligence Unit (BFIU) under the BB was ordered to report any amount of money withdrawn by a politically important person. The names of political leaders, bank chairmen, businessmen, secretaries, and senior police officers are on this list. Such instruction is given mainly to prevent any person from withdrawing money for criminal activity or escaping from the country. Read more: Bangladesh Bank operates without governor and deputy governors

Bangladesh Bank (BB) Governor Abdur Rouf Talukder on Monday (March 11, 2024) said that around 200 mobile financial services (MFS) accounts are closing each day due to their Hundi connection. The central bank is checking rigorously trade transactions through LC and mobile financial services to prevent money laundering activities by any means, he said. The governor said this in the opening ceremony of the money laundering prevention workshop held at the head office of the Criminal Investigation (CID), Bangladesh Police in the capital on Monday. Rauf highlighted the steps taken to prevent money laundering since his joining the Central Bank as Governor. He said, “When I joined Bangladesh Bank in 2022, there was a severe crisis of foreign exchange in the country. At that time took the first step to stop over-invoicing.” Read more: Inflation, currency prime focus of BB’s next monetary policy Again, money laundering occurs despite keeping the profit of export products abroad. Initiatives are also taken to prevent that, he mentioned. The governor expressed the strong stand of the central bank on banning hundi. He said that expatriates may send Tk500 to their family in the country, then he gives it to someone he knows abroad and asks him to give it to his family in the country. That money remains abroad. In contrast, a representative in Bangladesh paid the amount. As earlier payment was made through home delivery, now it is done through MFS. Read more: Entry-level women's recruitment doubles in banking sector, but board representation still lagging Around 200 such accounts are being closed every day. Later some accounts were opened again with guarantees, permanent action was taken against some of them, he said. Highlighting the context of the campaign against money changers, the governor said that USD $45 to $50 million transactions are done through money changers in the country every year. About $270 billion in transitions are made in the banking channel. But despite a small fraction of transactions, when money changers hiked the dollar rate, many expatriates tried to hold on to remittances. This is how the dollar crisis was created, Rouf pointed out. “That is why the campaign against money changers is ongoing. Also, avoid dealing in cryptocurrencies. It is completely illegal in our country,” said the BB Governor. CID Chief and Additional IGP Muhammad Ali Mia in the chair, head of Bangladesh Financial Intelligence Unit (BFIU) Md. Masud Biswas also spoke at the function. Read more: Bangladesh received $2.16 billion remittances in February, highest in fiscal

The High Court has given Bangladesh Financial Intelligence Unit (BFIU) three months to sign mutual legal assistance (MLA) pacts with 10 countries for obtaining information and proof required to recover black money stashed abroad. An HC bench of justices Md Nazrul Islam Talukder and Khijir Hayat passed the order on Wednesday (October 26, 2022). Deputy attorney general AKM Amin Uddin Manik appeared for BFIU, while advocate Khurshid Alam Khan represented the Anti-Corruption Commission (ACC). Read: HC orders BFIU to form research cell to bring back laundered money In a report submitted to the court on Tuesday, BFIU said that they had advised the Financial Institutions Division (FID) to sign MLA agreements with at least 10 countries to get necessary help in bringing back laundered money from abroad. These countries are the United States of America (USA), the United Kingdom (UK), Canada, Singapore, Australia, Malaysia, the United Arab Emirates, Switzerland, Thailand and Hong Kong (China). The report also said that "BFIU has asked Bangladesh Bank (BB) to recruit manpower for the proposed ‘Research Cell’ which will help in identifying money launderers and recovering the money." Read Black money whitening got little response in FY 22: NBR data According to the report, the recruitment process is currently ongoing. The report added that the sixth meeting of the taskforce, led by the attorney general and formed to recover laundered money, took place on January 3, 2022. The meeting was attended by representatives of the Home Ministry, the Foreign Ministry, FID, ACC, BFIU and the Criminal Investigation Department (CID) of Bangladesh Police. Read Finance bill 2022 passed with limits on proposal to whiten black money It was decided at the meeting that urgent steps needed to be taken to identify the launderers and bring back black money stashed in foreign banks. The High Court on August 31 ordered the head of Bangladesh Financial Intelligence Unit to form a research cell to prevent money laundering, bring back laundered money, monitor and control it. Bangladesh Financial Intelligence Unit head Md Masud Biswas was also directed to submit a progress report regarding the formation of Research Cell by the next hearing set to be held on October 26. On August 10, the Swiss ambassador in Dhaka Nathalie Chuard said that they have been providing the Bangladesh government with all information regarding deposits of Bangladeshi money in Swiss banks, "but no request has been submitted regarding any particular account". On August 11, the High Court bench ordered the government and the Anti-Corruption Commission to explain why the government did not seek information of deposits of Bangladesh money stashed in Swiss banks. On August 14, Bangladesh Financial Intelligence Unit was asked to submit a report in this regard in the affidavit form. On August 21, following the High Court order, Bangladesh Financial Intelligence Unit's report was submitted stating that the information regarding deposits of 67 Bangladeshis in various Swiss banks was sought from the authorities concerned in Bern.

Bangladesh Financial Intelligence Unit (BFIU) repeatedly sought information from different countries including Switzerland about money laundered by Bangladeshis, said Bangladesh Bank (BB). In response to a query on Saturday regarding the recent statement of the Swiss Ambassador, Md Serajul Islam, executive director and spokesperson of BB, said, “I have nothing to say anything about the statement of the Swiss Ambassador. But the BFIU repeatedly sought information from different countries on various issues, including illegal money transactions from Bangladesh.” All kinds of initiatives were taken to collect information about money laundering from the country, he said adding that the BFIU, the country's financial intelligence agency, has also sent several letters to the Swiss banks. Sirajul Islam said, “Whenever we need to collect information, the BFIU collects information from everywhere as the BFIU is a member of the Egmont Group of Financial Intelligence Units (FIUs), an international network of FIUs.” Foreign Minister AK Abdul Momen on Thursday said Bangladesh sought information on the deposits of Bangladeshi money in the Swiss banks but the Swiss side did not respond to the query. Read: Dhaka approached Swiss banks about deposit of Bangladeshi money: Momen Momen said this after his conversation on the issue with Bangladesh Bank Governor Abdur Rouf Talukder and Finance Secretary Fatima Yasmin on Thursday. The foreign minister said he advised the governor and the finance ministry to come up with the statements as confusion arose following some media reports quoting Ambassador of Switzerland to Bangladesh Nathalie Chuard. Momen said it is not true that Bangladesh did not seek information from Switzerland.     The Swiss envoy at the DCAB Talk on Wednesday said any estimate on deposits of Bangladeshi money in the Swiss banks is “purely speculative” and no conclusion can be drawn on the basis of media and other reports.  Responding to a question on information exchange on the issue, she said Switzerland is really committed to implementing international standards. In accordance with these international standards they can have some specific regulations and agreements also with the country to exchange this type of information, she said. “So that is something should be developed,” said the ambassador, adding that they have been providing to the government all the information regarding how to reach an agreement on these matters but no request has been submitted regarding any particular funding.

The High Court on Thursday directed the Anti-Corruption Commission and Bangladesh Financial Intelligence Unit to investigate the allegation of money laundering and embezzling customers’ money against e-commerce platform E-orange and submit their report within four months. The HC bench of Justice Md Nazrul Islam Talukder and Justice Kazi Md Ejarul Haque Akondo passed the order after hearing a petition by a customer. Also read: E-orange owner Sonia, 2 others remanded again The HC also wanted to know about the steps taken for bringing back the fugitive accused of e-commerce platform. It also issued a rule asking the government to explain as to why directives should not be given to the authorities concerned to take legal action against those involved in siphoning off money of the customers of e-commerce platform E-orange after investigation. Commerce Secretary and eight others have been made respondent to the rule. Deputy Attorney General AKM Amin Uddin Manik stood for the state while Advocate Ahsanul Karim and Abdul Kaiyum represented the petitioner. The customers of E-orange ordered products from the e-commerce platform by collecting e-ticket after clearing payments. Also read: BFIU seeks E-Orange's Bithi, Sohel's bank account details But the company did not provide the products to the respective customers.  In this circumstances,  on April 3, last year, some 547 customers filed a writ petition seeking return of Tk 77.46 crore and directives for investigations into the allegation of money laundering against the company.

The Bangladesh Financial Intelligence Unit (BFIU), a wing of the central bank, has summoned the bank accounts of 30 e-commerce companies including Daraj, Alesha Mart, Evaly and e-Orange. The BFIU has recently asked banks for detailed bank information of accounts including their transactions. A form has also been provided to send the information along with the BFIU letter. Also read: BFIU seeks Dr. Yunus’ bank account details The companies have been asked to provide the bank branch name, account name, number, type and date of opening, total deposit and withdrawal and current status of the bank where the transaction before this. Earlier bank accounts of these e-commerce companies were summoned and frozen at different times.  Banks asked to report whether the account is active or closed. Also read: BFIU seeks bank account details of 23 e-commerce platforms Also on the bank account summons list are: Q Coom, Aladdin's Lamp, Boom Boom, Priyoshop, Dhamaka Shopping, Sirajganj Shop, Adian Mart, Walmart, Needs, Dalal Plus, 24 Ticketi, Thole, We Com, Infinity Marketing, Anand Bazar, Akash Nil. Bright Hash, Annex World Wide, Amar Bazzar, Astar Protik, Bangladesh Deal, Bari Dukan.com, Sreshdo.com, Ames BD, Nirapad and Alif World. Many of these companies’ bank accounts have already been frozen. Earlier, Bangladesh Bank and intelligence agencies have taken information of transactions of e-commerce companies at different times. Read BB asks banks to cut tax on service value of non-resident nationals

Bangladesh Financial Intelligence Unit (BFIU) has sought banks account details from Nobel laureate Professor Muhammad Yunus. On Thursday BFIU sent a letters to banks seeking information on all types of accounts held by Yunus and credit card transactions by him. The agency asked former managing director of Grameen Bank to send the transaction records to BFIU by Tuesday. It is clear why such information was being sought. Also read: BFIU seeks bank account details of 23 e-commerce platforms According to a BFIU source, various agencies have been asked to provide information on the bank transactions of the person concerned. In the case of Yunus, no such organization has sought such information. Bangladesh Bank has requested this information for its own needs. It is known that in 2016, Bangladesh Bank and the National Board of Revenue (NBR) took information about the bank accounts of Yunus and his family members.  Younus was Managing Director of Grameen Bank since its inception in 1983. He was awarded the Nobel Peace Prize in 2006 jointly with Grameen Bank. Also read: HC stays labour law violation case against Dr Yunus for 6 months However, the government removed him from the post of MD in 2011 due to his retirement age. Yunus went to the high court challenging the government's decision and lost. At the time, lawmakers from various European countries, as well as then-US Secretary of State Hillary Clinton, pressed the government to change its decision in favour of Yunus.

To create a secure digital banking environment and to accelerate financial inclusion, IFC has signed a cooperation agreement with Bangladesh Financial Intelligence Unit (BFIU) for implementing an Electronic Know Your Customer (eKYC) project in Bangladesh, where only half the adult population has access to a formal financial system.BFIU, an independent government agency tasked with investigating suspicious transactions and money laundering, is also the central agency for ensuring KYC/eKYC compliance.Under the agreement, IFC and BFIU will work together to develop and adapt eKYC infrastructure, which is a foundational regulatory arrangement for conducting customer due diligence during new client on boarding process for collecting and verifying customer data electronically during opening of new accounts at banks, non-bank financial institutions, mobile financial service providers, insurance companies, and capital market intermediaries, said a press release of Bangladesh Bank. Also read: IFC provides liquidity succour to Covid-hit RMG sector According to central bank, an efficient digital on boarding infrastructure is one of the major building blocks for fast-tracking financial inclusion in Bangladesh.Under the current KYC protocol for opening new accounts, customers need to present their national identity (NID) cards in person and financial institutions (FI) must authenticate and keep a record manually photocopying and printing the NID.The process is time-consuming, costly, and inconvenient for both clients and FIs. Moreover, in-person account opening has become more difficult amid the COVID-19 pandemic and the development of eKYC will help in social distancing.Once in place, the eKYC infrastructure will not only cut time and cost of client on boarding, but it will help reach more customers digitally, thus, reducing the number of unbanked people, particularly the underserved such as small business owners and women entrepreneurs.The project will contribute to the financial inclusion agenda of the government of Bangladesh as well as IFC’s target of including an additional 30 million unbanked adults in the country by 2030.BFIU is expected to issue a comprehensive eKYC regulatory guideline for the financial sector by December 2024.Along with establishing a regulatory infrastructure, the eKYC project will also deliver data analytics, case studies, knowledge creation and dissemination and awareness building in the financial market. IFC estimates that 500,000 people will be covered by the e-KYC system by end of the project implementation period in 2025.“Financial sector especially financial institutions are experiencing a drastic process of digitalization.This digital transformation enables easy access of customer, even from the remote location, into the financial services. Also read: Kamal seeks soft IFC loan for private sector development This may pose some underlying risk of money laundering, terrorism financing and related criminal activities by abusing financial institutions and its services.To minimize such risk of financial sector e-KYC can be one of the most optimal solutions” said Md. Masud Biswas, Executive Director & Deputy Head of BFIU.“Promoting financial inclusion is one of the priorities for IFC’s work in Bangladesh. The implementation of eKYC infrastructure will offer seamless experience for end users and support the financial sector to reach out to last mile customers in Bangladesh, significantly increasing access to financial services”, said Qamar Saleem, IFC's Regional Manager Advisory Services for Financial Institutions Group in Asia and Pacific.IFC helps advance financial inclusion through investments in the financial sector, advisory services to investment clients and other private sector clients, and through advisory services to stakeholders in financial infrastructure.Earlier, for conversion from manual KYC to eKYC, BFIU ran a small-scale testing by opening 1,500 accounts using eKYC technology, such as biometrics, and the results confirmed its effectiveness.

The Bangladesh Financial Intelligence Unit (BFIU) of the central bank has sought the bank account details of OC Ranjit Kumar Barua and his wife Shelly Barua. The BFIU on Wednesday sent a letter to all the scheduled banks operating in the country asking them to provide detailed information about the bank accounts being operated against the names of Ranjit and his wife by October 14. The letter mentioned their respective permanent addresses as well as the national ID numbers, e-TIN numbers, and parents' names. Read: BFIU seeks E-Orange's Bithi, Sohel's bank account details Ranjit was transferred to the Armed Police Battalion shortly after he joined Chandpur District Detective Branch (DB) of the Police as an OC. Before that, Ranjit worked in different police stations in Chakaria, Teknaf, Maheshkhali, Cox's Bazar Sadar and the Chittagong Metropolitan Police. The letter said if any account, including that of Islamic banking, is operated in the past or present against the names of the persons and their organizations concerned, the detailed information of such accounts must also be sent to the BFIU. Read: BFIU seeks info of Jubo League chairman’s bank accounts In this case, all the details of the account (application form for opening the account with all documents, KYC, transaction profiles, and transactions from the beginning) should be sent. The information about the other assets like fixed deposits, loan account, LC is opened in their name has to be given to the BFIU. The banks have also been instructed to send the information of the nominees of these accounts to the BFIU.