BB forms new dept to combat money laundering, terrorism financing

The Bangladesh bank (BB) has introduced four new departments, including a dedicated unit to prevent money laundering and terrorism financing.

The central bank's Banking Regulation and Policy Department (BRPD) issued a circular regarding the new departments on Thursday (March 13).

The newly formed departments include the Bank Inspection Department-9, Inspection Compliance Department, and the Islamic Banking Regulations and Policy Department.

Previously, the Bangladesh Financial Intelligence Unit (BFIU) was responsible for addressing money laundering and terrorism financing issues. However, following the formation of the interim government, a new department has been created to handle the increasing workload.

According to the circular, the new departments were constituted to strengthen bank inspection and compliance processes, enhance post-inspection monitoring of bank headquarters and branches, and reinforce the central bank's role as a regulatory authority under the Prevention of Money Laundering Act, 2012, and the Prevention of Money Laundering Rules, 2019.

Furthermore, the Islamic Banking Regulations and Policy Department will develop regulatory frameworks and implement international standards for Islamic banking, said the circular.