Frequently Asked Questions (FAQ)

Q1. What is BFIU?

Ans: BFIU stands for Bangladesh Financial Intelligence Unit which is the central agency of Bangladesh to combat money laundering (ML), terrorist financing (TF) and proliferation financing of the weapons of mass destruction (PF). BFIU receives Suspicious Transaction/Activity Reports (STR/SARs), Cash Transaction Reports (CTRs) & information related to money laundering (ML) /financing of terrorism (TF) received from Reporting Organizations (ROs) & other sources. The main function of this Unit is to analyzes those reports and disseminate Intelligence report, if there suspicion of ML/TF/PF, to the relevant Law Enforcement Agencies (LEAs) for investigation and further course of action under the provisions of Money Laundering Prevention Act, 2012 and Anti Terrorism Act 2009 and the Rules thereon. For more...

Q2. What is the legal framework to combat money laundering and terrorist financing in Bangladesh?

Ans:

Acts
1. Money Laundering Prevention Act, 2012
2. Anti Terrorism Act, 2009

Related Acts
1. Mutual Legal Assistance on Criminal Matters Act, 2012
2. Anti Corruption Commission Act, 2004
3. The Customs Act, 1969
4. The Code of Criminal Procedure (CRPC) 1898
5. Penal Code 1860
6. Extradition Act, 1974

Rules
1. Money Laundering Prevention Rules, 2019
2. Anti Terrorism Rules, 2013
3. Mutual Legal Assistance on Criminal Matters Rules, 2012

Q3. What is money laundering?

Ans: Money laundering is a complex term which can be defined in a number of ways. Simply, it is defined as the process by which proceeds from a criminal offence are disguised or attempted to disguise their illicit origins or activity of smuggling of money or property earned through legal or illegal means to foreign country. Furthermore, remitting or bringing the proceeds of crime into Bangladesh from a foreign country with the intention of hiding their illicit origin also falls into the category of money laundering.

N.B. For further reference, please see ‘Money Laundering’ definition at the Clause 2(v) of the Money Laundering Prevention Act, 2012)

Q4. What are the stages of money laundering?

Ans: The money laundering process typically involves three stages: placement, layering, and integration.

1. Placement is the initial deposit or injection of the “illegally earned money” into the legitimate financial system.
2. Layering refers to the concealment of the source of the money through a series of transactions, most of which are unnecessary and accounting tricks. Sometimes, layering is done through structuring method of transaction.
3. Integration is the final stage. In this stage, the seemingly legitimate money is then withdrawn from the account to be used for whatever purposes the criminals have in mind for it and make it visibly legitimate.

Q5. What is Structuring?

Ans: Structuring is a method of transaction where the transaction is done in such a manner that is intended to avoid the reporting requirement of the Regulators.

Q6. What is smuggling of money or property?

Ans: In the Money Laundering Prevention Act, 2012; smuggling of money has been defined as-

1. Transfer or holding money or property outside the country breaching the existing regulation and laws of the country;
2. Refrain from repatriating the money or property from abroad in which the country has interest or was due to be repatriated;
3. Not bringing the actual due into the country from foreign country or paying to a foreign country in excess of the actual dues.

Q7. What is terrorist financing?

Ans: Terrorist financing is the financing or supply of funds, service or any other property to terrorism or terrorist activities. The funds may be generated from licit sources such as personal donations and profits from businesses and charitable organizations, as well as from criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion etc.

N.B. For further information, please see clause 7(1) of Anti Terrorism Act, 2009.

Q8. What is proliferation financing?

Ans: "Proliferation financing" refers to the act of providing funds or financial services which are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling or use of nuclear, chemical or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes), in contravention of national laws or, where applicable, international obligations. (Source: UNSCR 1540)

Q9. What are the predicate offences?

Ans: Predicate offences mean the offences described in 2(cc) of Money Laundering Prevention Act, 2012, by committing which within or outside the country, the money or property derived from is laundered or attempted to be laundered. Currently 27 offences have been included as predicate offence in the Money Laundering Prevention Act, 2012.

Q10. Which agencies do investigate money laundering offence?

As per the provisions of Money Laundering Prevention Act, 2012, the following agencies have been empowered to investigate money laundering offences:

1. Criminal Investigation Department (CID), Bangladesh Police
2. Anti Corruption commission (ACC)
3. Department of Narcotics Control (DNC)
4. National Board of Revenue (NBR)
5. Directorate of Environment
6. Bangladesh Securities and Exchange Commission (BSEC)

As per the attached list-1 of the Schedule of Money Laundering Prevention Rules, 2019; the investigative agencies investigate money laundering derived from respective predicate offences, i.e which falls under their respective jurisdiction:

Predicate Offence	Name of the related Investigative Agency
1. Counterfeiting Currency	Criminal Investigation Department (CID), Bangladesh Police
2. Counterfeiting Deeds and Documents,
3. Extortion,
4. Fraud,
5. Forgery,
6. Illegal Trade of Firearms
7. Kidnapping, illegal restrain and hostage taking
8. Murder, grievous physical injury
9. Trafficking of women and children
10. Theft or dacoity or robbery or piracy or hijacking of aircraft
11. Human Trafficking
12. Dowry
13. Infringement of Intellectual property and rights
14. Terrorism and financing of terrorism activities
15. Adulteration or manufacture of goods through infringement of title
16. Sexual Exploitation
17. Organized crime and participation in organized criminal group
18. Racketeering
19. Corruption and bribery	Anti Corruption commission (ACC)
20. Tax related offences	National Board of Revenue (NBR)
21. Offence related to the capital market (Insider trading and market manipulation)	Bangladesh Securities and Exchange Commission (BSEC)
22. Illegal Trade in narcotic drugs, psychotropic substances and substances causing intoxication	1. Department of Narcotics Control (DNC) 2. Criminal Investigation Department (CID), Bangladesh Police
23. Illegal Trade in stolen and other goods	1. National Board of Revenue (NBR) 2. Criminal Investigation Department (CID), Bangladesh Police
24. Black marketing
25. Smuggling of domestic and foreign currency
26. Smuggling and offences related to customs and excise duties
27. Offence relating to the environment	1. Directorate of Environment 2. Criminal Investigation Department (CID), Bangladesh Police

N.B. For further information, please see the list included in the ‘Schedulel’ of Money Laundering Prevention Rules, 2019

Q11. What are CTR, STR and SAR?

Ans: CTR is the acronym of Cash Transaction Report. CTR has been defined as cash deposit or withdrawal including online and ATM) of 10 (ten) lac taka or more, or of equivalent foreign currency in one or more transactions on a particular day in an account.
STR is the acronym of Suspicious Transaction Report. Suspicious transactions means such transactions which deviates from usual transaction and of which there is ground to suspect that the property is the proceeds of an offence or it might be financing to terrorist activity/terrorist group/individual terrorist.
SAR is the acronym of Suspicious Activity Report. Suspicious Activity arises from the unusual behavior or activity which triggers the suspicion that there might be attempt of hiding money generated from illegal source or predicate offences. Any suspicious attempted (not completed) transaction also falls in this category. The complaint received from general public or other sources are also treated as SAR.
In suspicious transaction reporting the transaction is completed and on the other hand in case of suspicious activity reporting there is attempt of suspicious transaction or the suspicious transaction could not be detected but there is enough element of suspicion for money laundering or terrorist financing.

Q12. Who can submit the CTR/STR/SAR?

Ans: The Reporting Organizations (ROs) of BFIU (see clause 2(w) of the Money Laundering Prevention Act, 2012) can submit CTR and STR/SAR.
Any person or entity can make/lodge complaint (in hardcopy or through website) to BFIU regarding money laundering or terrorist financing cases. The complaints from the public and other sources, other than the ROs, are regarded as SAR and BFIU do analysis based on those complaints.

For effective analysis on the part of BFIU, the complaints should include the following information/data:
1. Personal Information of the accused (Name, Father Name, Mother Name, NID/Passport/TIN Number)
2. Information of the accused Entity, where applicable (Name of the entity, Name of Owner/Top Management)
3. Summary of the complaint.
4. Amount of involved money.

Note that the personal identity of the complainant (individual/entity) is kept strictly confidential. Furthermore, there is scope of lodging complaint to BFIU hiding anyone’s personal identity. To lodge complaint, click here (hyperlink) or go directly to the complaint TAB in the home page of the website (www.bfiu.org.bd).

Q13. Who/which are the Reporting Organizations of BFIU?

As per clause 2(w) of Money Laundering Prevention Act, 2012; the followings are the Reporting Organizations (ROs) of BFIU:

1. Bank
2. Financial institution
3. Insurer
4. Money changer
5. Any company or institution which remits or transfers money or money value
6. Any other institution carrying out its business with the approval of Bangladesh Bank
7. Stock dealer and stockbroker, Portfolio manager and merchant banker, Securities custodian, Asset manager
8. Non-profit organization, Non-government organization, Cooperative society
9. Real estate developer
10. Dealer in precious metals or stones
11. Trust and company service provider
12. Lawyer, notary, other legal professional and accountant
13. Any other institution which Bangladesh Bank may, from time to time, notify with the approval of the Government

Q14. What is DNFBP?

Ans: DNFBP stands for Designated Non Financial Business and Professions such as dealers in precious metals or stones, trust and company service provider, lawyer, notary, other legal professional and accountant etc. DNFBPs have been included as RO of BFIU as they can be used by the perpetrators as a conduit of money laundering and terrorist financing.

Q15: What are the punishments for money laundering offences?

Ans:

Penalties and punishments of Money Laundering offence	Imprisonment	Financial penalty	Provision in case of failure to pay the penalty	Asset forfeiture
Individual	Up to 4-12 years	twice the value of the property involved in the offence or 10 lac taka; whichever is higher	Additional imprisonment in case of failure of payment	In addition, the court may pass order to forfeit the property of the convicted person in favor of the State
Entity	-	1. twice the property involved in crime or 20 lac taka, whichever is higher 2. Cancellation of the registration of the entity	Additional imprisonment of the owner, chairman or director of the entity in case of failure of payment	-

N.B. Please refer to the clause 4 of Money Laundering Prevention Act, 2012.

Q16. What are the punishments for terrorist activity and terrorist financing?

Ans: Different levels of punishments and penalties of terrorist activity and terrorist financing have been determined on the basis of the degree of offence of terrorist activity and terrorist financing. As per the existing law, the highest level of punishment and penalty of the offences are as follows:

	Punishment	Financial penalty
Terrorist Activity	Death or imprisonment for life	In addition, fine may be imposed
Terrorist Financing	Imprisonment for a term not exceeding 20 years but not less than 4 years	in addition to that, a fine may be imposed equal to twice the value of the property involved in the offence or taka 10(ten) lac, whichever is greater.

N.B. For further information and clarification, please refer to the clause 6-7 of Anti Terrorism Act 2009.

Q17. What is a sanction?

Ans: Generally, sanction is defined as the application of penalties targeted towards individual, group or on state/s by other states. The sanctions may be:

1. Economic Sanctions
2. International Sanctions

Economic sanctions are commercial and financial penalties whereby international sanctions are political and economic decisions by countries, multilateral or regional organizations against states or organizations either to protect national security interests, or to protect international law, and defend against threats to international peace and security.

Only the UN Security Council has a mandate by the international community to apply sanctions (Article 41) that must be complied with by all UN member states. They serve as the international community's most powerful peaceful means to prevent threats to international peace and security or to settle them. Since 1966, the Security Council has established 30 sanctions regimes and presently there are 14 ongoing sanctions regimes which focus on supporting political settlement of conflicts, nuclear non-proliferation, and counter-terrorism. As member country, Bangladesh has to strictly follow the sanctions imposed by UN (For UN sanction list… click here).

On domestic front, the Bangladesh Government, with the empowerment of Anti Terrorism Act 2009, on reasonable grounds that a person or an entity is involved in terrorist activities, may, by order, proscribe person or entity or enlist in sanction list. Currently, the Bangladesh Government has listed the following 08 organizations as terrorist entity and banned them by official gazette.

1. Shahadat‐E‐Al Hikma Party Bangladesh
2. Jagroto Muslim Janata Bangladesh (JMB)
3. Jamatul Mujahidin
4. Harkatul Jihad Al
5. Hizbut Tahrir Bangladesh
6. Ansarullah Bangla Team
7. Ansar‐Al‐Islam
8. Allahr Dol

For information regarding the legal actions against the sanctioned individual/group/state, please refer to the clause 20 and 20A of Anti Terrorism Act, 2009.