Regulatory Alerts2010-03-03
Added · Updated
AML Circular No. 24: Instructions for Compliance with Money Laundering Prevention Act, 2009 and Anti Terrorism Act, 2009
Bangladesh Bank mandates that all banks and financial institutions establish board-approved policy manuals for preventing money laundering and terrorist financing, ensuring conformity with international standards and local laws. Institutions must implement Know Your Customer procedures, including verifying customer identity and collecting beneficial ownership information, specifically defining beneficial owners as those holding 20% or more shares or controlling a company. Enhanced due diligence is required for Politically Exposed Persons, their family members, and close associates, necessitating senior management approval and source of wealth verification. Correspondent banking relationships are restricted by prohibiting connections with shell banks and requiring enhanced scrutiny for banks in jurisdictions failing to meet international anti-money laundering standards.