The cost of foreign transactions for businesses is likely to fall as
Bangladesh looks to get its name off Financial Action Task Force’s list
of high-risk countries.
Founded in 1989 on the initiative of the then G7, the FATF develops policies to combat money laundering and terror financing. Bangladesh found itself on the high-risk list in 2010, after poor reports from the Asian wing of the intergovernmental organisation.
Due to the country’s name on the list, businessmen have to pay an additional 1 percent risk premium for letter of credit confirmation charge, which ranges from 0.25 percent to 0.5 percent.
“We are hopeful that Bangladesh will no longer be termed a high-risk country from next February,” a senior official of Bangladesh Bank (BB) told The Daily Star, adding that the country would present its case to the FATF plenary in Paris next month.
The body will then dispatch an on-sight team to Dhaka in November, feedback from which will determine the fate of Bangladesh’s delisting, he added.
“The on-sight report would be presented in FATF’s plenary in February — we are expecting Bangladesh would be delisted from the high-risk countries then.”
The Asian wing of FATF expressed satisfaction over the recent efforts Bangladesh has taken to counter terrorism and money laundering, Abu Hena Mohammad Razee Hassan, deputy governor of BB, said.
Over the last 3 years, the country has enacted a number of laws to curb terror financing and anti-money laundering and in July 2013 became a member of the Egmont Group, an association of Financial Intelligence Units from around the world, he said.
“International cooperation is paramount and it is very good to see that Bangladesh wants to play an important role against terror financing and money laundering,” said Emile van der Does de Willebois, senior financial sector specialist of World Bank.
“The impending Anti-Terrorism Act will make sure that terrorists do not have the funds to operate dangerous activities,” he added, while calling for cooperation from all stakeholders for the law’s efficacy.
Founded in 1989 on the initiative of the then G7, the FATF develops policies to combat money laundering and terror financing. Bangladesh found itself on the high-risk list in 2010, after poor reports from the Asian wing of the intergovernmental organisation.
Due to the country’s name on the list, businessmen have to pay an additional 1 percent risk premium for letter of credit confirmation charge, which ranges from 0.25 percent to 0.5 percent.
“We are hopeful that Bangladesh will no longer be termed a high-risk country from next February,” a senior official of Bangladesh Bank (BB) told The Daily Star, adding that the country would present its case to the FATF plenary in Paris next month.
The body will then dispatch an on-sight team to Dhaka in November, feedback from which will determine the fate of Bangladesh’s delisting, he added.
“The on-sight report would be presented in FATF’s plenary in February — we are expecting Bangladesh would be delisted from the high-risk countries then.”
The Asian wing of FATF expressed satisfaction over the recent efforts Bangladesh has taken to counter terrorism and money laundering, Abu Hena Mohammad Razee Hassan, deputy governor of BB, said.
Over the last 3 years, the country has enacted a number of laws to curb terror financing and anti-money laundering and in July 2013 became a member of the Egmont Group, an association of Financial Intelligence Units from around the world, he said.
“International cooperation is paramount and it is very good to see that Bangladesh wants to play an important role against terror financing and money laundering,” said Emile van der Does de Willebois, senior financial sector specialist of World Bank.
“The impending Anti-Terrorism Act will make sure that terrorists do not have the funds to operate dangerous activities,” he added, while calling for cooperation from all stakeholders for the law’s efficacy.
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