The Bangladesh Bank is in the process of signing agreements involving anti-money laundering and terror financing cooperation with more than a dozen central banks around the world, including those of the United States, Canada and India.
Drafts of the proposed memorandums of understanding have already been exchanged between the Bangladesh Bank and other interested central banks, a central bank deputy governor has told New Age.
Bangladesh Bank officials view the signing of the agreement as a ‘major breakthrough’ after the central bank’s financial intelligence unit secured membership of the Egmont Group in July.
Egmont is in an informal group of financial intelligence units around the world set up to improve cooperation in the fight against money laundering and terror financing.
According to officials, central banks of other countries have in the past shown little interest in making any such deals with the Bangladesh Bank but now that the Bangladesh Bank is a member of the Egmont Group, their attitude has changed.
‘Full-stream negotiations are going on to sign MoUs involving cooperation to combat money laundering and terror financing with at least 14–15 central banks of the word,’ Abu Hena Mohd Rajee Hasan, a deputy governor of the Bangladesh Bank, told New Age.
‘Now that the Bangladesh bank is a member of the Egmont Group, central banks of influential countries no longer have any reservation about striking deals with the financial intelligence unit of the Bangladesh Bank in this connection. We have got mileage in the global arena after the membership,’ he added.
He said that the image of Bangladesh as a country, which does not tolerate terror financing and is uncompromising in its attempt at stopping cross-boarder money laundering, would improve further after the signing of the proposed agreements.
The country has so far signed 14 such memorandums of understanding, officials said.
The central banks with which Bangladesh is keen to sign agreements included those of the United States, Canada, Argentina, India, Bhutan, Vietnam, Brunei, Fiji and Serbia.
At least three to four agreements are expected to be signed before the end of 2013, a financial intelligence unit official said.
Officials in the Bangladesh Bank said that once a memorandum was signed with a country, information relating to the siphoning of money or illegal money transfer by any individuals or corporations could be shared through the secure Egmont web site.
The contracting central banks have ‘a legal obligation’ in sharing information amongst them, they added.
Bangladesh obtained membership of the Egmont Group five years after the country had formally applied for it after the enactment of the Anti-terrorism Act 2009, the Money Laundering Prevention Act 2012 and the Mutual Legal Assistance Act 2012.
The Paris-based Financial Action Task Force and the Sydney-based Asia Pacific Group on anti-money laundering extended technical cooperation so that Bangladesh fulfilled the criteria necessary for becoming an Egmont member.
‘The Egmont membership has brought significant prestige for the country as many central banks from countries including those who are members of the G-8 are now interested to sign MoUs with us, and global sovereign credit rating agencies now rate Bangladesh high and treat us differently in international forums,’ a senior finance official told the New Age on Monday.
Finance officials, however, pointed out that after becoming a member of the Egmont Group and after signing MoUs on anti-money laundering cooperation with other central banks, it will be necessary for the Bangladesh Bank and other enforcement agencies to become even more vigilant to demonstrate their commitment against money laundering.
-With New Age input
