BFIU Circular No. 09: Guidelines on Prevention of Money Laundering and Terrorist Financing for NPO/NGO Sector

Bangladesh Financial Intelligence Unit Bangladesh Bank Head Office, Dhaka. Website: www.bb.org.bd BFIU Circular No. 09 Date: 20 November, 2013 Chief Executive Non Profit Organisation & Non Government Organisation. Dear Sir, Issuance of Guidelines for Non Profit Organisation and Non Government Organisation for compliance of the provisions contained in the Money Laundering Prevention Act, 2012 and Anti Terrorism Act, 2009. As per the provision of section 2(w)(viii)(1) & (2) of Money Laundering Prevention Act, 2012 and section 2(20)(h)(1) & (2) of Anti Terrorism Act, 2009 (including amendments) all Non Profit Organisations and Non Government Organisations operating in Bangladesh have been included as Reporting Organizations. 2. Under section 2(e) of Money Laundering Prevention Act, 2012 and section 2(23) of Anti Terrorism Act, 2009 Non Profit Organisation means any institution registered/licensed under section 28 of Company Act, 1994 (Act No. XVIII of 1994) and under the provision of section 2(r) of Money Laundering Prevention Act, 2012 and section 2(24) of Anti Terrorism Act, 2009 Non Government Organisation means the institution authorized or registered under Societies Registration Act, 1860 (Act No. XXI of 1860), Voluntary Social Welfare Agencies (Registration and Control) Ordinance, 1961 (Ordinance No. XLVI of 1961), Foreign Donations (Voluntary Activities) Regulation Ordinance, 1978 (Ordinance No. XLVI of 1978), Foreign Contributions Regulation Ordinance, 1982 (Ordinance No. XXXI of 1982) and Microcredit Regulatory Authority Act, 2006 (Act No. XXXII of 2006) which- (1) receive fund (loan, grant, deposit) from local sources or provide fund to others; and/or (2) receive any kind of foreign donation or loan or grant. 3. After reviewing the activities of NPO/NGOs a Guideline titled 'Guidelines on Prevention of Money Laundering and Terrorist Financing for NPO/NGO Sector' has been formulated considering the risk of money laundering and terrorist financing through these institutions which is issued as per the power conferred in section 23(1)(d) of Money Laundering Prevention Act, 2012 and section 15(1)(d) of Anti Terrorism Act, 2009. The Guideline can be downloaded from Bangladesh Bank website (http://www.bb.org.bd/aboutus/regulationguideline/ guidelist.php). 4. It is worthwhile to mention that instructions of AML circular No. 27, dated: 15 June, 2011 issued from this Unit will remain in force. Instructions of the above mentioned Guidelines shall come into force immediately.

Yours faithfully, (Debaprosad Debnath) General Manager Tel: 9530118