Bankers in Bangladesh focus on trade based money laundering

Trade-based money laundering (TBML) was a key theme at the recent Annual Banking Conference 2015, organised by the Bangladesh Institute of Bank Management (BIBM).

Central bankers stressed the importance of anti-TBML measures taken by banks at the opening plenary session and in a specially prepared paper delivered at the conference.

Illegal outflows

Every taka leaving Bangladesh has to be purposeful, general manager of Bangladesh Bank, Sheikh Mozaffar Hossain told a plenary session.

“Bankers can definitely stop the illegal outflow of capital through trade over- and under-invoicing. For example, when a letter of credit opens, bankers can check the price of the product,” he said.

Law enforcement

Senior economic advisor to the governor of Bangladesh Bank, Faisal Ahmed, called for tougher enforcement of laws to stall the illegal outflow of capital.

He also said that banks should train its officials on TBML so they can detect illicit capital outflows.


BIBM lecturers Rahat Banu and Abdul Halim presented a paper highlighting the trend of illicit fund flows (IFFs) and made recommendations on how to tackle the problem.

According to their paper, leakage in the balance of payments and trade mis-invoicing by businesses are the main conduits for IFFs.

They called on the central bank to make its anti-money laundering department more effective and on government to consider methods for ensuring exchange rates used to transfer local assets abroad are those set by the government.

Categories: Trade Based Financial crimes News

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