Bangladesh Bank has asked the non-government and non-profit organisations to send suspicious transaction reports to the central bank to prevent money laundering and terrorist financing.
To this end, the BB issued a guidelines and a circular to chief executives of all NGOs and NPOs on Wednesday in accordance with the Money Laundering Prevention Act 2012 and Anti-Terrorism Act 2009, asking them to comply with the guidelines and the acts.
The central bank will cancel the licences of the NGOs and the NPOs or will impose financial penalty against them if they fail to follow the BB guidelines, the circular said.
Besides, the BB will recommend to the regulators concerned to take punitive action against the alleged NGOs and the NPOs, if required.
The BB asked the NGOs and the NPOs to maintain complete and correct information with regard to the identity of its customers during the operation of their accounts, the circular said.
The BB instructed the NGOs and the NPOs to preserve previous records of transactions of accounts for at least five years from the date of such closure if any account of a customer is closed.
The NGOs and the NPOs have been asked to report the BB immediately on their own accord about the suspicious transactions.
Each NGO and NPO will have to prepare the anti money laundering and combating financing of terrorism policy with approval of their boards of directors, trustees, and top most policy making committee. The organisations will have to review their AML and CFT policy annually and ensure all relevant staff are aware of the changes.
As part of its AML/CFT policy, each NGO and NPO will communicate clearly with all their employees on an annual basis through statement from the chief executive officer that clearly sets forth its policy against money laundering and terrorist financing.
Each organisation will nominate a head office based senior level employee as chief anti money laundering compliance officer who will be responsible for AML and CFT legal and regulatory compliance and the contact point to communicate with Financial Intelligence Unit of the BB.
The NGOs and the NPOs will have to take appropriate steps to identify, assess and understand their money laundering and the terrorist financing risks for customers and direct beneficiaries (person, group of persons or organization), countries or geographic areas or delivery channels.
Each NGO and NPO, which receives foreign aid, grants and donations, will have to collect correct and complete information of identification of their direct beneficiaries which receive cash, goods and services amounting more than Tk 10,000 in a year.
The NGOs and the NPOs will have to collect correct and complete information of identification with supporting documents of those customers who have been sanctioned loan of Tk 75,000
or above and those who have deposited more than Tk 50,000 or above with the organisations.
The BB asked the NGOs and the NPOs to preserve direct beneficiaries’ information for five years.
The NGOs will have to preserve micro credit customer’s information along with records of transaction for at least five years from the date of closure of the relationship with the customer.
The donor NGOs must preserve the partner NGOs’ information for at least five years from the closing date of agreement.
The NGOs and the NPOs will have to collect and preserve the correct and complete information of identification of those who control or direct the activities of the organisation (senior officers, board members, trustees or others) in details.
The NGOs have been asked to maintain bank account in the name of the organisation with nearby scheduled bank branch. All customers’ transactions of the NPOs and the NGOs involving Tk 1,00,000 and above will have to be routed through the banking channel.
Only one bank account will be maintained by every NGO and NPO for receiving donations and grants.
Separate bank accounts for separate projects may be maintained after the donations have been received through the only bank account opened for receiving funds.
Bank accounts of NGOs and the NPOs should be operated only with joint signatures by at least two officials as approved by appropriate authority.
The senior management of the NGOs and the NPOs will have to conduct meeting once at least in every three months on AML and CFT strategy and activities of the organisation.
The NGOs and the NPOs functioning in Bangladesh do not have to receive any fund from any person or organisation or their directly or indirectly related organisations that are listed under the resolutions of United Nation Security Council. Any such transaction must be freezed and reported to BFIU immediately.
-With New Age input
