Bangladesh Bank raises alert over terror financing

The central bank has put banks in Bangladesh on maximum alert so that they can avoid being used for financing terrorism following the prime minister’s directive.

Bangladesh Bank has also asked them to inform their branch managers across the country by Wednesday of the warning.

Deputy Governor and Bangladesh Financial Intelligence Unit (BFIU) chief Abu Hena Md Razee Hassan told the chief executive officers of all banks of the heightened alert at a meeting Tuesday.

“You will take the maximum caution so that your banks are not used for any kind of terror financing or by any terrorist for transactions,” he said.

“BFIU or Bangladesh Bank will conduct thorough inspection to see whether the branch officials are aware of the order.”

The prime minister on Feb 5 directed all banks and financial institutions to identify those who finance militant and terror activities.

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She had also called for strict monitoring of financial transactions carried out through banks to stop terror funding.

The central bank cautioned the CEOs at Tuesday’s meeting in line with the prime minister’s directive, said a Bangladesh Bank official.

The deputy governor said the internal control and audit department, and central compliance unit of each scheduled bank would review the clients’ financial transactions in the past six months at the branches of ‘risky districts’.

“If any out of the ordinary or suspicious transaction is found in the review, they will report to the BFIU and submit reports on a weekly basis on the branches inspected,” he said.

Razee Hassan said: “Taking into consideration the legal obligations as to whether the anti-money laundering and anti-terror finance mechanism is being applied properly, chief executive of the bank need get the compliance system of his bank evaluated by the internal control and audit department or by forming a separate team, if necessary.”

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He asked the banks to submit an evaluation report to BFIU by the end of March.

Warning the banks, the deputy governor said if any bank failed to abide by the anti-money laundering and terror finance policy, BFIU could fine it up to Tk 2.5 million and cancel the licence of its relevant branch, service centre, booth or agent.

The bank chairman or chief executive can be fined Tk 2.5 million if they failed to carry out their responsibilities to check money laundering and terror finance, he said.

“Even BFIU may remove them from their positions,” he added.