BFIU orders brokerage houses, merchant banks to set up anti-money laundering units
Under the new rules, firms must establish whether any influential person is among the beneficial owners associated with capital market-related institutions.
The Bangladesh Financial Intelligence Unit (BFIU) has ordered brokerage houses, merchant banks and other capital market intermediaries to set up dedicated compliance units as part of a broader move to strengthen safeguards against money laundering and terrorist financing.
The directive, issued in a circular yesterday (15 September) to the chief executives of brokerage houses, merchant banks, portfolio managers, securities custodians and asset management companies, requires each institution to establish a Central Compliance Unit (CCU) at its head office, headed by a chief anti-money laundering compliance officer (CAMLCO).
They must also appoint branch anti-money laundering compliance officers (BAMLCOs) and formulate specific policies to prevent money laundering and terrorist financing.
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Under the new rules, firms must establish whether any influential person is among the beneficial owners associated with capital market-related institutions.
They must collect complete and accurate customer information from reliable sources, including national identity cards, passports and birth registration certificates, when opening accounts. Electronic know-your-customer (e-KYC) procedures may also be used where necessary.
The institutions must regularly screen customers to identify links with individuals or entities listed under United Nations Security Council resolutions or designated by the Bangladesh government as prohibited persons or entities.
They have also been instructed to monitor transactions regularly and report any complex, inconsistent or apparently illegal transaction in writing to the BAMLCO. The CCU must verify such transactions and, where necessary, report them immediately to the BFIU through the GoAML web-based system.
The circular stressed that such reports must be kept strictly confidential.
The firms must conduct self-assessments every six months using a prescribed checklist and arrange independent verification through their internal audit departments.
The BFIU also directed them to conduct background checks when recruiting staff, provide regular training on anti-money laundering measures, and retain customer and transaction records for at least five years after an account or business relationship is terminated.
