Legal Framework for AML/CFT in Bangladesh
Mandatory Reporting Obligations
Reporting Agencies (RAs), including Banks, Financial Institutions, and MFS providers, must adhere to strict reporting thresholds and due diligence procedures as per BFIU Circulars and the Money Laundering Prevention Rules, 2019.
| Report Type | Trigger/Threshold | Statutory Deadline |
|---|---|---|
| Cash Transaction Report (CTR) | BDT 1,000,000+ in a single day | Monthly (within 21 days of month-end) |
| Suspicious Transaction Report (STR) | No threshold; based on suspicion | Immediately (within 24 hours of detection) |
| Suspicious Activity Report (SAR) | Attempted unusual activity | Immediately to BFIU |
| KYC/CDD Records | Account opening/Transaction | Maintain for 5 years after closing |
Compliance Roadmap for FinTech and MFS
- Customer Due Diligence (CDD): Implementation of e-KYC as per BFIU Circular No. 25/2020.
- Sanction Screening: Real-time screening against UN Security Council Resolutions (UNSCR) and domestic lists under Section 20 of the Anti-Terrorism Act 2009.
- Transaction Monitoring System (TMS): Automated alerts for unusual patterns inconsistent with the customer's profile.
- Appointment of CAMLCO: Every RA must appoint a Central Anti-Money Laundering Compliance Officer (CAMLCO) as per BFIU guidelines.
Penalties for Non-Compliance
Failure to report or maintain records can lead to severe administrative and criminal liabilities. Under Section 23(3) of the Money Laundering Prevention Act 2012, BFIU may impose fines ranging from BDT 10,000 to BDT 500,000 per instance of non-compliance, or cancel the license of the entity.
Consult LegalBD
Ensure your FinTech or Banking operations meet BFIU standards. Contact Barrister Liton Asaduzzaman Sarkar for a compliance audit.
Schedule ScopingFrequently Asked Questions
What is the penalty for 'Tipping-off' under Bangladesh law?
Under Section 6 of the Money Laundering Prevention Act 2012, any person who discloses information regarding an investigation or reporting to the concerned party (Tipping-off) shall be punished with imprisonment for a term not exceeding 5 years or a fine not exceeding BDT 500,000, or both.
How long must a bank preserve transaction records?
Pursuant to Section 25(1)(d) of the Money Laundering Prevention Act 2012, all reporting agencies are mandated to maintain records of transactions and customer identity for at least 5 years from the date of closure of the account or termination of the business relationship.
◆ Related Statutory Guides & Practice Insights
<li style="margin-bottom:12px; line-height:1.5;">
<a href="/en/syndicated-loan-security-trustee-bangladesh/" style="color:#C5A059; font-weight:600; text-decoration:none; font-size:14px; display:inline-block; transition:color 0.2s;">• Syndicated Loan Agreements & Security Trustee Structuring in BD</a>
</li>
<li style="margin-bottom:12px; line-height:1.5;">
<a href="/en/lc-dispute-mitigation-ucp-600-bangladesh/" style="color:#C5A059; font-weight:600; text-decoration:none; font-size:14px; display:inline-block; transition:color 0.2s;">• LC Dispute Mitigation: UCP 600 Compliance in Bangladesh</a>
</li>
<li style="margin-bottom:12px; line-height:1.5;">
<a href="/en/indemnity-limitation-liability-it-contracts-bangladesh/" style="color:#C5A059; font-weight:600; text-decoration:none; font-size:14px; display:inline-block; transition:color 0.2s;">• Indemnity and Liability Limits in Cross-Border IT Contracts</a>
</li>
<li style="margin-bottom:12px; line-height:1.5;">
<a href="/en/saas-msa-data-sovereignty-bangladesh-law/" style="color:#C5A059; font-weight:600; text-decoration:none; font-size:14px; display:inline-block; transition:color 0.2s;">• SaaS Master Service Agreements: Data Sovereignty & BD Law</a>
</li>