The Role of Banking Sector in the Prevention of Money Laundering in Bangladesh
Chapter One
Introduction
1.0 INTRODUCTION
Besides of development of Economic activities, monetary related crimes are also increasing in both developed and underdeveloped countries. Almost in each country illegal transaction of money has been increased & these illegal money has been also used on various illegal activities.
Money laundering process refers to illegal receipt or transfer of fund from one place to another. This process involves not only the banking system of the country but also non-banking system. Bangladesh is moving towards an open economy with a small-magnetized sector by liberalizing the financial and economic policies. However, the money laundering mechanisms are creating problem for a country like Bangladesh.
Bangladesh Bank as the Central bank of Bangladesh Supervise all the banking and non-banking financial transactions on behalf of Bangladesh Government. Money laundering process is a great obstacle to the execution of monetary policy adopted by Bangladesh bank to stable the economy of the country. To prevent money laundering, money laundering prevention bill 2002 was passed in the National Assembly of Bangladesh on 5 April 2002 and Gazette Notification was made on 7 April 2002. And Bangladesh Bank has been designated to act as the main preventive agency.
Money Laundering has serious adverse effect on Economical, Political & Social condition of a country. It increases unequal distribution of income and as a result, the employment level, output level of the country, price stability as well as economic development and growth can be hampered. So it is immediately required to prevent it.
I believe it is a matter of great opportunity for me to study on this topic, as Money laundering, is a manifestation and a facilitator of organized crime, and has attracted increasing interest in our country. Due to money laundering process, desirable investment of the country cannot be done, national income declines and economic growth of the country
Introduction
1.0 INTRODUCTION
Besides of development of Economic activities, monetary related crimes are also increasing in both developed and underdeveloped countries. Almost in each country illegal transaction of money has been increased & these illegal money has been also used on various illegal activities.
Money laundering process refers to illegal receipt or transfer of fund from one place to another. This process involves not only the banking system of the country but also non-banking system. Bangladesh is moving towards an open economy with a small-magnetized sector by liberalizing the financial and economic policies. However, the money laundering mechanisms are creating problem for a country like Bangladesh.
Bangladesh Bank as the Central bank of Bangladesh Supervise all the banking and non-banking financial transactions on behalf of Bangladesh Government. Money laundering process is a great obstacle to the execution of monetary policy adopted by Bangladesh bank to stable the economy of the country. To prevent money laundering, money laundering prevention bill 2002 was passed in the National Assembly of Bangladesh on 5 April 2002 and Gazette Notification was made on 7 April 2002. And Bangladesh Bank has been designated to act as the main preventive agency.
Money Laundering has serious adverse effect on Economical, Political & Social condition of a country. It increases unequal distribution of income and as a result, the employment level, output level of the country, price stability as well as economic development and growth can be hampered. So it is immediately required to prevent it.
I believe it is a matter of great opportunity for me to study on this topic, as Money laundering, is a manifestation and a facilitator of organized crime, and has attracted increasing interest in our country. Due to money laundering process, desirable investment of the country cannot be done, national income declines and economic growth of the country
References: ➢ Bangladesh Gazette on Money Laundering Prevention Act-2002 and its amendment on 27 February 2003. ➢ FATF, 2003, Financial Action Task Force on Money Laundering – The Forty Recommendations, http:// www.fatf-gafi.org/40Recs_en.htm ➢ Quirk, Peter, 1996,” Macroeconomic Implications of Money laundering”, IMF working paper No. 96/66. ➢ Khan, Murshid Kuli, 1999, “Money Laundering”, Bank Parikrama, Vol.XXIV, No.2. ➢ Khan, Murshid Kuli, 2002, “Money Laundering”, a paper presented in the seminar of the Institute of Bankers, Bangladesh (IBB) held on 30th October, 2002. ➢ Smetanka, J. A. “Money Laundering in Bangladesh.” A Paper presented at a seminar organized by BIBM and American Express Bank on March 11,2000. ➢ Ali, Muhammad Mahboob, Journal of IBB, Vol.50, No. 2 Dec.-2003, PP 137-154. Institute of Bankers, Bangladesh. ➢ Md. Harunur Rashid Chowdhury, GM, Anti-Money Laundering Department, Bangladesh Bank, Dhaka, “Money Laundering: An overview & general idea in the context of Money Laundering Prevention Act, 2002”. ➢ http://www.apgml.org/Index_files/Underground_banking_and_alternatice_remittance_systems.pdf [pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic][pic]