BFIU Circular No. 04: Guidance Notes on Prevention of Money Laundering and Terrorist Financing

Bangladesh Financial Intelligence Unit Bangladesh Bank Head Office, Dhaka. Website: www.bfiu.gov.bd BFIU Circular No.: 04 Date: 01 Ashwin, 1419 16 September, 2012

Managing Director / Chief Executive Officer All Financial Institutions operating in Bangladesh

Subject: Issuance of Guidance Notes on Prevention of Money Laundering and Terrorist Financing.

Dear Sir,

In accordance with the provisions of the Money Laundering Prevention Act, 2012 and the Anti-Terrorism Act, 2009 (including amendments in 2012), all financial institutions operating in Bangladesh (institutions defined in Section 2(c) of the Money Laundering Prevention Act, 2012) are included as reporting entities. Previously, financial institutions were included as reporting entities under the earlier Money Laundering Prevention Acts of 2002 and 2009, and the Anti-Terrorism Act, 2009. Under the powers granted by the aforementioned Acts, Bangladesh Bank has issued various circulars and circular letters from time to time for the compliance of financial institutions to prevent money laundering and terrorist financing.

2. Considering the business scope, nature, legal framework for operations, etc., of financial institutions, the risk of money laundering and terrorist financing occurring through these institutions has been addressed. 'Guidance Notes on Prevention of Money Laundering and Terrorist Financing' have been prepared for financial institutions to mitigate such risks. These guidance notes are issued under the powers granted in Section 23(c) and Section 15(j) of the Money Laundering Prevention Act, 2012 and the Anti-Terrorism Act, 2009 (including amendments in 2012), respectively. The said Guidance Notes can be downloaded from the website of Bangladesh Bank (www.bb.org.bd/information/guidelines/guidelines.htm).

3. To prevent money laundering and terrorist financing through financial institutions, all financial institutions must prepare their own guidance notes by considering the guidance notes mentioned above as minimum standards, taking into account their respective business areas, scope, and nature. These internal guidance notes must be approved by their respective management and submitted to this Unit by October 31, 2012. Necessary measures for compliance must be taken by December 30, 2012.

4. All parties are hereby informed regarding the above matter.

(Debasish Debnath) General Manager Phone: 9530118

Copy No: BFIU-1/1/2012- Date: Noted

Copies are sent to the following for information and necessary action:

1. Executive Director, Bangladesh Bank, Motijheel, Dhaka/Chittagong.
2. Executive Director, Secretary to the Governor's Office, Bangladesh Bank, Head Office, Dhaka.
3. All Departmental Heads, Bangladesh Bank, Head Office, Dhaka.
4. General Manager, Bangladesh Bank, Rajshahi/Khulna/Bogura/Sylhet/Sadar Ghat, Dhaka/Barisal/Rangpur.
5. Personal Staff of the Governor, Bangladesh Bank, Head Office, Dhaka.
6. Deputy Director/Assistant Director attached with the Deputy Governors, Bangladesh Bank, Head Office, Dhaka.
7. Personal Assistants to the Financial Advisor/Executive Directors, Bangladesh Bank, Head Office, Dhaka.
8. Director General, Bangladesh Institute of Bank Management, Mirpur, Dhaka.
9. Secretary, The Institute of Bankers Bangladesh, BSRB Building, 10th Floor, 12, Kawran Bazar, Tejgaon, Dhaka.
10. Chairman, Bangladesh Association of Banks, 42, Kamal Ataturk Avenue, Banani, Dhaka.
11. Chairman, Association of Bankers, Bangladesh, Eastern Commercial Complex, 73, Kakrail, Dhaka.
12. Chairman, Bangladesh Leasing and Finance Companies Association, 63, Dilkusha B/A (4th Floor), Dhaka-1000.
13. Managing Director / Chief Executive Officer, all Scheduled Banks.
14. Managing Director / Chief Executive Officer, all Financial Institutions.

(Kamal Hossain) Deputy Director Phone: 9530010-75/2482 E-mail: kamal.hossain@bb.org.bd