Tuesday, October 5, 2010
Laundering scanner on stock dealers
The central bank yesterday asked stock dealers and brokers and non-government organisations to send to it information about any suspicious transactions, to help prevent money laundering. The directive came through a circular.
Bangladesh Bank (BB) officials said these institutions will immediately inform the BB of any terrorist and militant financing.
The officials said six sectors have been included in the list of those requiring to inform BB of such transactions. Six types of crimes have also been brought within the purview of the anti-money laundering act.
According to the central bank circular, insider trading and market manipulation, and adulteration of commodities are now money laundering-related crimes.
The BB took the steps with the government approval, the officials said. The new steps will upgrade Bangladesh's anti-money laundering act to international standards in line with the recommendations of Financial Action Task Force, the world's lone anti-money laundering organisation.
Under the existing law, institutions such as banks, financial institutions, insurance companies and moneychangers now report on suspicious transactions.
The other organisations included in the new list are portfolio managers and merchant bankers, security custodians, fund managers, and nonprofit organisations.
The new types of crimes now considered as money-laundering activities include terrorism and terror financing, organised crimes, environment-related crimes, and sexual repression.
The BB officials said they will issue another circular soon, giving detailed direction as to how the institutions will provide the report to the central bank.
The move will not affect the stockmarket, a BB official said. Rather the general investors will be benefited, as there will be no unhealthy competition by the black money holders in the market.
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