Is the money laundering law currently in force and adequate?

PENALTIES UNDER MLPA:

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 new provisions of penalties in the section

23 of MLPA, 2012. These are:

(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  relevant  authority  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.

(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.

Why it is necessary to prevent money laundering?

Money laundering allows terrorists and criminals to undertake various activities like:

1. Drug  trafficking

2. Financing terrorist activities

3. Evasion of exchange regulations

4. Evasion of taxation rules

5. Making blackmail payments

6. Paying ransom for kidnapping.

7. Dealing of arms and ammunitions