Bangladesh has taken an additional step to curb trade-based money laundering (TBML) by forming a nine-member expert committee within the Bangladesh Financial Intelligence Unit (BFIU).

The committee has been formed to specifically focus on mitigating the risks of frauds and forgeries in the banking sector.

Bad loans

Local media reports that the committee has already sought information on the loans written-off in the last two consecutive years from all banks.

While most banks have now provided the required information, those that have not responded may be subject to questioning by the committee.

TBML guidelines

The BFIU has already finalised guidelines for the prevention of TBML to help banks spot red flags before transactions are authorised.

Since 2013 Bangladesh has been a member of the Egmont Group – a forum of the Financial Intelligence Units (FIUs) in 165 different countries – and is able to exchange information on money laundering and terrorist financing among member countries.

Categories: Trade Based Financial crimes News