An Analysis of BFIU Circular 26

BFIU Circular No. 26 published by Bangladesh Financial Intelligence Unit (BFIU) dated 16 June 2020. The Circular published for the schedule banks in Bangladesh for prevention of money laundering, terrorist financing and proliferation financing.

As per BFIU Circular No.26 dated 16 June 2020, clause no. 1.3 (1) (Ka) - a Bank must have a Central Compliance Committee headed by a 'Higher Officer' of bank who is called Chief Anti Money Laundering Compliance Officer (CAMLCO). The Higher Officer (who is called CAMLCO) will be in the rank of Managing Director (MD) or not below two (02) ranks from the rank of CEO (Chief Executive Officer). But for foreign banks, the 'Higher Officer' must be a member of Management Committee.

The Clause no. 1.3 (1) (Ca) states that the Central Compliance Committee (CCC) will be consists of Seven (07) members where CAMLCO, DCAMLCO and Head of different division (such as Human Resources Division, Credit Division, Retail & Corporate Banking Division, Foreign Exchange Division, Operation Division, Card Division, IT Division etc.) will be included. Anyone from Internal Audit Department cannot be member of Central Compliance Committee.

Clause no. 1.3 (1) (Cha) states that the Central Compliance Committee (CCC) will arrange quarterly basis at least four (04) meeting.

Clause no. 1.3 (2) states - the Central Compliance Committee (CCC) will submit report to CEO, where applicable, to Board of Directors to inform them and getting instructions from them on half-yearly basis (January - June, July-December) regarding CCC's taken steps and implementation of such steps and recommendation of prevention of money laundering and terrorist financing. The report along with CEO's instruction and opinion will be placed at the Top Management Committee; and a copy of the report will be sent to BFIU within two (02) months from the end of half-year.

Download BFIU Circular 26: www.bankingpathshala.com/BFIU-Circular-26.pdf

Published Date: 05/08/2023