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Banks should develop data banks on their own in order to prevent billions of dollars from being siphoned out of Bangladesh through trade-based money laundering, a study recommended.
At the same time, banks should have self-initiatives in place to make the data available for other private commercial banks, according to the study titled “Addressing Trade-based Money Laundering in Bangladesh: An Assessment.”
The findings of the study were shared at a workshop organised by the Bangladesh Institute of Bank Management (BIBM) at its auditorium in Dhaka yesterday.
Some $5.9 billion was siphoned out of Bangladesh in 2015 through trade mis-invoicing, Global Financial Integrity said in January, ranking the country second in South Asia in terms of illicit outflows of money.
“Money laundering is a big challenge worldwide and Bangladesh is not out of it,” said SM Moniruzzaman, a deputy governor of the central bank.
A collective effort is needed to curb money laundering, he said.
Bangladesh does not have adequate technology penetration and skilled workforce to prevent money laundering, said Barkat-e-Khuda, a chair professor of the institute.
He emphasised improving efficiency of bankers to curb laundering. Every bank should develop its own data base instead of waiting for the central bank’s instruction.
The databases of all banks should be interlinked, he added.
Banks and other stakeholders will have to play an active role in preventing money laundering, said Helal Ahmed Chowdhury, a supernumerary professor of the BIBM.
Monitoring will have to be strengthened at authorised dealer branches of banks, he said.
“Bankers will have to have depth of knowledge about credit reports,” said Md Yasin Ali, another supernumerary professor of the BIBM.
The factors behind the money laundering will have to be identified, said Faruq Mainuddin, managing director of Trust Bank. He called for raising awareness among bankers and customers to thwart the menace.
Shah Md Ahsan Habib, a director of the institute, presented the research paper.
source (TDS)
