1

Chapter One
Introductory Chapter

1.1 Introduction :
In highly interconnected world, money laundering has become a widespread and secretive form
of financial crime that damages global economies. It erodes trust in financial systems and
enables criminals to expand their illegal activities. Money laundering is a complex process
involving hiding the origins of illegally obtained money, enabling criminals to make their profits
appear legitimate and mix them with legal funds. As financial systems advance, so do the
methods used for money laundering, making it more and more challenging for law enforcement
and regulators to address this issue. Money laundering is the process of transforming “dirty”
money, earned from criminal activities such as drug trafficking, human trafficking, corruption,
fraud, or terrorism, into “clean” money with no apparent illegal origins. The primary goal of
money laundering is to create the illusion of legitimate wealth, making it difficult for authorities
to trace the funds back to their illegal sources.

1.2 Statement of the Problem:

Money laundering damages financial sector institutions critical for economic
growth, promoting crime and corruption that slow economic growth and
reducing efficiency in the real sector of the economy. Money laundering is a
problem not only in the world's major financial markets and sea canters but also in
emerging markets. As emerging markets open up their economies and financial sectors,
they become increasingly appropriate targets for money laundering activities. It creates
unpredictable changes in money demand, as well as causes large fluctuations in
international capital flows and exchange rates.

1.3 Research Questions

To explore the Consequences of money laundering Persisting losses, this Study sets the
following questions :
1.What is the current situation of money laundering in Bangladesh?
2.What is the current situation to reduce the amount of money laundering?
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1.4 Objectives of the Study

In this study the objectives are sine below:
1.To provided an overview of money laundering laws in Bangladesh
2.To investigate the situation of money laundering disclosure in Bangladesh
3.To compare existing money laundering disclosure practices to Bangladesh Bank issues
4.To learn what kinds of measures a bank financial institution should take to prevent
money laundering.

1.5 Research Methodology

This Paper contains non- doctrinal research which includes Socio-Legal Research. The
method that is used in this non-doctrinal research is general approach. This Research is
conducted based on both primary and secondary data. This research details the study
implementing the money laundering laws in Bangladesh. Data has also been collected
from scholarly writings such act, Ordinance,journals,books and articles, research Papers
published in both printed and Online versions. The reason behind choosing this method is
to find out the authentic news, reason and situation regarding this paper so that the
readers can understand the situation well.

1.6 Nature and Scope of the Study

The study of money laundering laws in Bangladesh involves examining the legal
frameworks, regulatory measures, and enforcement practices aimed at preventing and
combating money laundering activities. This includes analyzing both domestic laws and
international standards, as well as the effectiveness of implementation mechanisms.

1.7 Limitation of the Study

Each research study process inherit limitations. Therefore this research monograph is not exempt
from this constraint and has narrowed down the scope. The Primary constraint in doing this
research is a limited amount of time. In order to do comprehensive research the allotted time
frame, lacks of books journal, limiting of depth knowledge data collection and analysis.
3

1.8 Literature Review

Money laundering poses significant threats to the financial integrity and economic stability of
nations, including Bangladesh. This review explores the legal framework, enforcement
mechanisms, challenges, and recent developments regarding money laundering laws in
Bangladesh. "Money Laundering in Bangladesh: A Legal Perspective" by Mohammad Zubair
Hossain "Anti-Money Laundering in Bangladesh" by Sayed S. Masud"Legal Framework of Money
Laundering in Bangladesh" by Kazi Abdur Rahman "Money Laundering: A Comprehensive
Study" by Md. Ahsanul Haque “Understanding Money Laundering" by Shamsul Hoque "The
Fight Against Money Laundering in Bangladesh" by Md. Ashikur Rahman "Banking Regulations
and Money Laundering" by Nazmul Ahsan "Economic Crime and Anti-Money Laundering" by S.
A. S. M. Zaman "Combating Money Laundering: The Role of Law Enforcement" by Zubair A. A. A.
"International Standards and Bangladesh: A Review of AML Laws" by M. H. Khan.

1.9 Conclusion
Money laundering is currently the main concern for major financial
institutions. The financial crime must have been understood,
investigated, and combated effectively by the growing international
industry, as well as any individual country. We should all fight money
laundering because that reduces government income, disrupts asset and
input costs, and causes resource misapplication. The breakdown of
creditworthiness and shareholder trust that such disasters can cause has
the potential to adversely affect the financial sector, compared to smaller
economies such as Bangladesh. As a result, money laundering
prevention is critical. On the basis of confirmatory factor findings In terms
of identifying suspicious money laundering wrongdoings, we can
strongly advise that they be resolved by inspecting the involvement of
various domestic offenders with different networks and introducing
rigorous anti-corruption measures, which will actually require integration of
the Federal Revenue department, strict regulatory implementation, and
encourage from specialists to detect offenders in serious instances,
collaborating with local law enforcement and implementation officials, and
creating emphasizing the importance of human resources.
4

Chapter Two
Money Laundering and It,s Availability

2.1Introduction

Money laundering is the process of making illegally obtained money appear

legitimate.The availability of money laundering schemes varies by jurisdiction and
regulatory environment. Criminals often exploit weaknesses in financial systems,
making it a persistent issue globally. Enhanced regulations, compliance measures,
and international cooperation are crucial in combating money laundering.

2.2 What is Money Laundering

Money laundering can be defined in a number of ways. But the fundamental concept of Money
laundering is the process by which proceeds from a criminal activity are disguised to conceal
their illicit origins. Most countries subscribe to the definition adopted by the United Nations
Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (the Vienna
Convention, 1988) and the United Nations Convention against Transnational Organized Crime
(the Palermo Convention, 2000). The definition of money laundering as per the above
UN Convention is as follows:
The conversion or transfer of property, knowing that such property is derived from any offense,
e.g. drug trafficking, or offenses or from an act of participation in such offense or offenses, for
the purpose of concealing or disguising the illicit origin of the property or of assisting any
person who is involved in the commission of such an offense or offenses to evade the legal
consequences of his actions; The concealing or disguising of the true nature, source, location,
dis-position, movement, rights with respect to, or ownership of property, knowing that such
property is derived from an offense or offenses or from an act of participation in such an
offense or offenses, and; The acquisition, possession or use of property, knowing at the time of
receipt that such property was derived from an offense or offenses or from an act of
participation in such offense or offenses. The Financial Action Task Force on Money Laundering
(FATF), which is recognized as the international standard setter for anti-money laundering
(AML) efforts, defines the term “money laundering” succinctly as “the processing of criminal
proceeds to disguise their illegal origin in order to legitimize the ill-gotten gains of crime.”
5

According to the Section 2(v) of the Money Laundering Prevention Act, 2012-Money Laundering
mens –
(i) knowingly move, convert, or transfer proceeds of crime or property involved in an offence
for the following purposes:
(1) concealing or disguising the illicit origin/nature, source, location, ownership or control of the
proceeds of crime; or
(2) assist any person for evading the legal consequences of his or her action who is involved in
the commission of the predicate offence;
(ii) smuggle funds or property abroad earned through legal or illegal means;
(iii) knowingly transfer or remit the proceeds of crime into or out of Bangladesh with the
intention of hiding or disguising its illegal source;
(iv) conclude or attempt to conclude financial transactions in such a manner as to avoid
reporting requirement under this Ordinance.
(v) convert or movement or transfer property with the intention to instigate or assist the
carrying out of a predicate offence;
(vi) acquire, possess or use property, knowing that such property is the proceeds of a predicate
offence; or
(vii) perform such activities so that illegal source of the proceeds of crime may be concealed or
disguised; or
(viii) participate in, associate with, conspire to commit, attempt to commit or abet, instigate or
counsel to commit any offences mentioned above.

2.3 Background of Money Laundering Prevention Activities

The historical background of money laundering prevention activities reflects the growing
recognition of the need to combat the illicit flow of criminal proceeds through the global
financial system. The development of these activities has evolved over decades, from early
awareness in the 20th century to the establishment of comprehensive international
frameworks in the 21st century.
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Early Recognition of Money Laundering

Pre-20th Century: Money laundering, as a concept, was not formally recognized in the past, but
methods to conceal illicit funds have existed for centuries. In the early days of banking and
trade, criminals would use various informal methods to hide or transfer their wealth, often
through cash transactions or underground financial networks.
Prohibition Era (1920s): The first clear instances of modern money laundering practices are
often traced back to the U.S. during the Prohibition era (1920-1933), when organized crime
syndicates made huge profits from illegal alcohol sales. They needed to legitimize these
proceeds by laundering money through legitimate businesses like casinos, banks, and
nightclubs.

The 1970s: The Emergence of Money Laundering as a Concern

Watergate Scandal: The term "money laundering" is often attributed to the 1970s, particularly
during the investigation into the Watergate scandal (1972-1974). The scandal exposed how
criminal organizations, including those involved in political corruption, laundered illegal money
through financial institutions. It raised public awareness about the need for financial
institutions to monitor suspicious activities.The Bank Secrecy Act of 1970 (USA): In response to
concerns about money laundering, the U.S. passed the Bank Secrecy Act (BSA) in 1970. The act
required banks to keep records of transactions and report suspicious activity to the authorities.
It laid the groundwork for future anti-money laundering (AML) laws by formalizing the
requirement for financial institutions to track large transactions and cooperate with law
enforcement.

1980s: International Attention and the Rise of Drug Cartels

Drug Cartels and the Need for Regulation: The 1980s saw a major shift, as international drug
cartels, particularly those from Colombia and Mexico, became involved in large-scale money
laundering operations. They needed to disguise the proceeds from the illegal drug trade, often
through banking systems or trade-based money laundering.
The FATF’s Formation (1989): In response to the growing concern over drug trafficking and its
links to money laundering, the Financial Action Task Force (FATF) was established by the G7
countries in 1989. The FATF’s goal was to develop international standards and
recommendations to combat money laundering, focusing on promoting transparency in the
financial system and preventing the misuse of banks for illicit activities.
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1990s: The Growth of International Standards

FATF's 40 Recommendations (1990): In 1990, the FATF published its first set of
Recommendations provide a comprehensive framework for countries to combat money
laundering. These recommendations covered aspects such as customer identification, record-
keeping, suspicious transaction reporting, and international cooperation.
The Role of Financial Institutions: During this period, financial institutions became more central
to AML efforts. Laws were introduced requiring banks and other financial institutions to
implement Know Your Customer (KYC) procedures to verify the identity of clients and detect
suspicious activities. Many countries, including the U.S. and the UK, introduced or expanded
their own anti-money laundering legislation
2010s: Strengthening the Legal Framework
The 2012 FATF Revision: The FATF updated its original 40 recommendations to address
emerging risks such as the role of new financial technologies (like online banking and
cryptocurrencies) and the increasing complexity of global financial markets.
Financial Action Task Force (FATF) Blacklist: The FATF began to actively monitor and "blacklist"
countries that failed to comply with its standards. Countries that did not take adequate steps to
fight money laundering faced significant penalties, such as being excluded from the
international financial system, which encouraged more nations to adopt AML measures.

2.4 Stages of Money Laundering

There is no single method of laundering money. Methods can range from the purchase and
resale of a luxury item (e.g. a house, car or jewellery) to passing money through a complex
international web of legitimate businesses and 'shell' companies (i.e. those companies that
primarily exist only as named legal entities without any trading or business activities). There are
a number of crimes where the initial proceeds usually take the form of cash that needs to enter
the financial system by some means. Bribery, extortion, robbery and street level purchases of
drugs are almost always made with cash. This has a need to enter the financial system by some
means so that it can be converted into a form which can be more easily transformed, concealed
or transported. The methods of achieving this are limited only by the ingenuity of the launderer
and these methods have become increasingly sophisticated.
Despite the variety of methods employed, the laundering is not a single act but a process
accomplished in 3 basic stages which may comprise numerous transactions by the launderers
that could alert a financial institution to criminal activity –
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Placement - the physical disposal of the initial proceeds derived from illegal activity.
Layering - separating illicit proceeds from their source by creating complex layers of financial
transactions designed to disguise the audit trail and provide anonymity.
Integration - the provision of apparent legitimacy to wealth derived criminally. If the layering
process has succeeded, integration schemes place the laundered proceeds back into the
economy in such a way that they re-enter the financial system appearing as normal business
funds.

2.5 Conclusion
Money laundering is a complex financial crime that involves disguising the origins of illegally
obtained money. Its availability stems from various factors, including the growth of the global
economy, technological advancements, and weaknesses in regulatory frameworks.In
conclusion, the prevalence of money laundering poses significant risks to financial systems,
governance, and social stability. Efforts to combat it require robust international cooperation,
improved regulatory measures, and advancements in technology to trace and monitor
suspicious transactions. Continuous education and awareness are also vital to strengthen
institutional responses and reduce opportunities for laundering activities. Addressing these
challenges is essential for safeguarding the integrity of financial systems worldwide.
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Chapter Three
Existing Situation of Money Laundering in Bangladesh

3.1 Introduction
Money laundering remains a significant challenge in Bangladesh, with both domestic and
international implications for the economy and the financial system. Despite legal frameworks
and international commitments to combat this issue, the country continues to face difficulties
in fully addressing money laundering activities. These activities often involve complex financial
transactions designed to conceal the origin of illegal funds, making it a persistent problem for
regulators, financial institutions, and law enforcement agencies.

3.2 Present Context of Bangladesh for Money Laundering

Money laundering remains a pressing issue in Bangladesh, driven by weak regulatory
enforcement, corruption, and increasing financial transactions across both formal and informal
sectors. Criminal activities such as drug trafficking, human trafficking, and terrorism financing
contribute to the illicit flow of funds, which are then laundered through various mechanisms,
including the real estate sector, trade-based money laundering, and informal banking systems
like1 hundi.In response to these challenges, Bangladesh has made legal and institutional strides,
such as the introduction of the Anti-Money Laundering Act (2002) and the formation of the
Bangladesh Financial Intelligence Unit (BFIU). These measures aim to track and combat illicit
financial flows. Despite this, the country continues to struggle with enforcement and
compliance. Issues such as inadequate supervision of financial institutions, lack of awareness
among stakeholders, and pervasive corruption hinder the effective implementation of anti-
money laundering (AML) policies.Internationally, Bangladesh has faced scrutiny from the
Financial Action Task Force (FATF), which has urged the country to address deficiencies in its
AML framework. While Bangladesh has made some progress, particularly in improving
itsreportingmechanisms and increasing cooperation between agencies, money launder remains
a significant challenge due to loopholes in the system and insufficient penalties for offenders.

1
"Bangladesh: Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Compliance." Financial
Action Task Force (FATF) reports and evaluations.
2 The Daily Star (2023). "Money Laundering: A Persistent Issue in Bangladesh."
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3.3 Compliance Requirements under the Laws

In Bangladesh, compliance requirements for CMI, as reporting agency, are based on Money
Laundering Prevention Act (MLPA), 2012, Anti terrorism Act (ATA), 2009 (including amendment
of 2012) and circulars or instructions issued by BFIU.According to section 25 (1) of MLPA, 2012
CMI’s responsibilities to prevent money laundering are -
a) to maintain complete and correct information with regard to the identity of its Clients during
the operation of their accounts;
b) to preserve previous records of transactions of any Client’s account for at least 5(five) years
from the date of closure;
c) to provide with the information maintained under clauses (a) and (b) to Bangladesh Bank
from time to time, on its demand;
d) if any suspicious transaction or attempt of such transaction as defined under clause (z) of
section 2 is observed, to report the matter as ‘suspicious transaction report’ to the Bangladesh
Bank immediately on its own accord.
According to section 16 of Anti Terrorism Act, 2009 (including amendment of 2012), CMI’s
responsibilities to combat financing of terrorism are -
(1) Every reporting agency shall take necessary measures, with appropriate caution and
lresponsibility, to prevent and identify financial transactions which are connected to any
offence under this Act and if any suspicious transaction is identified, the agency shall
spontaneously report it to the Bangladesh Bank without any delay.
(2) The Board of Directors, or in the absence of the Board of Directors, the Chief Executive
Officer, by whatever name called, of each reporting organization shall approve and
issue directions regarding the duties of its officers, and shall ascertain whether the
directions issued by Bangladesh Bank under section 15, which are applicable to the
reporting agency, have been complied with or not.

2
Money Laundering Prevention Act 2012 (MLPA): The primary legal framework regulating money laundering
prevention in Bangladesh.
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3.4 Supervisory Power of Bangladesh Bank

According to the provision laid down in the section 23 of MLPA, 2012 and section 15 of Anti
Terrorism Act, 2009 (including amendment of 2012) Bangladesh Bank is the core implementing
agency.
Powers under MLPA, 2012:
Under section 23 of MLPA, 2012, Bangladesh Bank shall have the following powers and
responsibilities to prevent money laundering and to resist any such activities:
a) to analyze or review information related to cash transactions and suspicious transactions
received from any reporting organization and o collect additional information relating thereto
for the purpose of analyzing or reviewing from the reporting organizations and maintain data
on the same and, as the case may be, provide with the said information to the relevant law
enforcement agencies for taking necessary actions;
b) ask for any information or obtain a report from reporting organizations with regard to any
transaction in which there are reasonable grounds to believe that the transaction is involved in
money laundering or a predicate offence;
c) issue an order to any reporting organization to suspend or freeze transactions of any account
for a period not exceeding 30 (thirty) days if there are reasonable grounds to suspect that any
money or property has been deposited into the account by committing any offence;Provided
that such order may be extended for additional period of a maximum of 6 (six) months by 30
(thirty) days, if it appears necessary to find out correct information relating to transactions of
the account;
d) issue, from time to time, any direction necessary for the prevention of money laundering to
the reporting organizations;
e) monitor whether the reporting organizations have properly submitted information and
reports requested by Bangladesh Bank and whether they have duly complied with the
directions issued by it, and where necessary, carry out on-site inspections of the reporting
organizations to ascertain the same;
f) arrange meetings and seminars including training for the officers and staff of any organization
or institution, including the reporting organizations, considered necessary for the purpose of
ensuring proper implementation of this Act by Bangladesh Bank;
g) carry out any other functions necessary for the purposes of this Act.
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Powers under ATA,2009 (including amendment of 2012):

The power and responsibilities of Bangladesh Bank under section 15(1) of Anti Terrorism Act,
2009 (including amendment of 2012) are as follows:
1) Bangladesh Bank may take necessary steps to prevent and identify any transaction carried
out by any reporting agency with intent to commit an offence under this Act and for this
purpose it shall have the following powers and authority, namely:-
(a) to call for a report relating to any suspicious transaction from any reporting agency;
(b) to provide the reports received in accordance with sub-clause (a) to the respective law
enforcement agencies for taking necessary steps or, as the case may be, provide them to
foreign law enforcement agencies upon their request or exchange information relating to the
reports;
(c) to collect and preserve all statistics and records;
(d) to create and maintain a database containing the reports of all suspicious transactions;
(e) to analyze reports relating to suspicious transactions;
(f) if there are reasonable grounds to suspect that a transaction is connected to terrorist
activities, to issue an written order to the respective reporting agency to suspend or freeze
transactions of that relevant account for a period not exceeding 30 (thirty) days and, if it
appears necessary to reveal correct information relating to transactions of the said account,
such suspension or freezing order may be extended for an additional term not exceeding 6 (six)
months by 30 (thirty) days at a time;
(g) to monitor and supervise the activities of reporting agency;
(h) to give directions to the reporting agencies to take preventive steps to prevent financing of
terrorist activities;
(i) to inspect the reporting agencies for the purpose of identification of suspicious transactions
connected with financing of terrorist activities; and
(j) to provide training to officers and employees of the reporting agencies for the purpose of
identification and prevention of suspicious transactions connected with financing of terrorist
activities.
(2) Bangladesh Bank, on identification of a reporting agency or its Client as being involved in a
suspicious transaction connected to financing of terrorist activities, shall inform the same to the

3
Money Laundering Prevention Act 2012: Defines the legal framework for preventing money laundering, with
direct oversight by Bangladesh Bank for its enforcement in the banking sector.
13

relevant law enforcement agency and provide all necessary cooperation to facilitate their
inquiries and investigations into the matter.
(3) If the trial of any offence committed in another country is pending, Bangladesh Bank shall
take steps to seize the accounts of any person or entity pursuant to any international, regional
or bilateral agreement, United Nations conventions ratified by the Government of Bangladesh
or respective resolutions of the United Nations Security Council.
(4) The fund seized under sub-section (3) shall be subject to disposal by the concerned court
pursuant to the concerned agreements,conventions or resolutions adopted by the United
Nations Security Council.
(5) In order to dispose of the responsibilities mentioned in sub-sections (1) to (3),
governmental, semi-governmental, autonomous bodies shall provide requested information or,
as the case may be, spontaneously provide information to the Bangladesh Financial Intelligence
Unit.
(6) The Bangladesh Financial Intelligence Unit shall, on demand or, as the cases may be,
spontaneously provide information relating to terrorist activities or financing of terrorist
activities to financial intelligence units of other countries.
(7) For the purpose of investigation relating to financing of terrorist activities, the law
enforcement agencies shall have the right to access any document or file of any bank under the
following conditions:
(a) with an order from a competent court or tribunal; or
(b) with the approval of the Bangladesh Bank.

3.5 Penalties under MLPA, 2012:

According to section 25 (2) of MLPA, 2012, if any reporting organization violates the directions
mentioned in sub-section (1) of section 25 of MLPA, 2012, Bangladesh Bank may-
(a) impose a fine of at least taka 50 (fifty) thousand but not exceeding taka 25 (twenty five) lacs
on the reporting organization; and
(b) in addition to the fine mentioned in clause (a), cancel the license or the authorization for
carrying out commercial activities of the said organization or any of its branches, service
centers, booths or agents, or as the case may be, shall inform the registration or licensing
authority about the fact so as to the relevant authority may take appropriate measures against
the organization.
In addition to the above mentioned provisions there are some other provisions of penalties in
the section 23 of MLPA, 2012. These are:
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(3)If any reporting organization fails to provide with the requested information timely under
this section, Bangladesh Bank may impose a fine on such organization which may extend to a
maximum of Taka 5 (five) lacs at the rate of Taka 10 (ten) thousand per day and if any
organization is fined more than 3(three) times in 1(one) financial year, Bangladesh Bank may
suspend the registration or license of the organization or any of its branches, service centers,
booths or agents for the purpose of closing its operation within Bangladesh or, as the case may
be, shall inform the registration or licensing authority about the fact so as to the relevant
authority may take appropriate measures against the organization.

(4)If any reporting organization provides with false information or statement requested under
this section, Bangladesh Bank may impose a fine on such organization not less than Taka 20
(twenty) thousand but not exceeding Taka 5 (five) lacs and if any organization is fined more
than 3(three) times in 1(one) financial year, Bangladesh Bank may suspend the registration or
license of the organization or any of its branches, service centers, booths or agents for the
purpose of closing its operation within Bangladesh or, as the case may be, shall inform the
registration or licensing authority about the fact so as to the relevant authority may take
appropriate measures against the said organization.

(5) If any reporting organization fails to comply with any instruction given by Bangladesh Bank
under this Act, Bangladesh Bank may impose a fine on such organization which may extend to a
maximum of Taka 5 (five) lacs at the rate of Taka 10 (ten) thousand per day for each of such
non compliance and if any organization is fined more than 3(three) times in 1(one) financial
year, Bangladesh Bank may suspend the registration or license of the organization or any of its
branches, service centers, booths or agents for the purpose of closing its operation within
Bangladesh or, as the case may be, shall inform the registration or licensing authority about the
fact so as to the relevantauthority may take appropriate measures against the said
organization.

(6) If any reporting organization fails to comply with any order for freezing or suspension of
transaction issued by Bangladesh Bank under clause (c) of sub-section 23(1) of MLPA, 2012,
Bangladesh Bank may impose a fine on such organization not less than the balance held on that
account but not more than twice of the balance held at the time of issuing the order.

4
The Money Laundering Prevention Act, 2012 (MLPA 2012)
15

(7) If any person or entity or reporting organization fails to pay any fine imposed by Bangladesh
Bank under sections 23 and 25 of this Act, Bangladesh Bank may recover the fine from accounts
maintained in the name of the relevant person, entity or reporting organization in any bank or
financial institution or Bangladesh Bank, and in this regard if any amount of the fine remains
unrealized, Bangladesh Bank may, if necessary, make an application before the court for
recovery and the court may pass such order as it deems fit.
(8) If any reporting organization is imposed fine under sub-sections 23 (3), (4), (5) and (6),
Bangladesh Bank may also impose a fine not less than Taka 10 (ten) thousand but not exceeding
taka 5 (five) lacs on the responsible owner, directors, officers and staff or persons employed on
contractual basis of that reporting organization and, where necessary, may direct the relevant
organization to take necessary administrative actions.

3.6 Conclusion
In conclusion, while Bangladesh has made significant strides in strengthening its legal and
institutional frameworks to combat money laundering, challenges remain in effective
enforcement and implementation. The country has enacted various laws, such as the Money
Laundering Prevention Act 2012, and has established regulatory bodies like the Bangladesh
Financial Intelligence Unit (BFIU) to oversee compliance. However, issues such as a lack of
awareness, limited resources, and weaknesses in coordination between agencies hinder the full
effectiveness of these laws. Additionally, the informal financial sector and political influence
continue to pose obstacles in detecting and preventing money laundering activities. To enhance
the effectiveness of anti-money laundering (AML) efforts, Bangladesh needs to improve
institutional capacity, increase transparency, and foster greater international cooperation in the
global fight against illicit financial flows.