BFIU orders banks to report linked accounts when any account is frozen
The move will help the BFIU trace funds across multiple accounts linked to the same person or entity.
The Bangladesh Financial Intelligence Unit (BFIU) has directed banks and other reporting agencies to immediately report details of accounts linked to any account they are ordered to freeze.
The directive was issued today (19 August) in a circular letter to the managing directors and chief executive officers of all reporting agencies in the country as part of efforts to prevent money laundering and terrorist financing.
Under the directive, once a reporting agency receives an order from the BFIU to freeze an account, it must promptly provide the intelligence unit with the basis for the freeze and details of other accounts linked to the frozen account.
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In other words, if an account belonging to a person or entity is frozen over suspicious transactions, money laundering or related offences, the agency cannot stop at freezing that account. It must also identify other accounts linked to the same person or entity and provide their details to the BFIU.
The BFIU said Rule 26(4) of the Money Laundering Prevention Rules, 2019, specifically requires reporting agencies to provide information on the basis of a freeze and other accounts linked to the frozen account when ordered by the intelligence unit.
The circular stated that the directive was issued under powers granted by Section 23(1)(d) of the Money Laundering Prevention Act, 2012, and Section 15(1)(d) of the Anti-Terrorism Act, 2009.
The BFIU said the directive would strengthen the monitoring of other accounts held by the same person or entity after a suspicious account is frozen.
It is particularly intended to help identify and collect information on related accounts when money linked to money laundering or terrorist financing is transferred through or spread across multiple bank accounts, it added.
