MICROCAPITAL BRIEF: Bangladesh Government to Investigate NGOs, Microcredit Entities for Money Laundering

The Bangladeshi government reportedly intends to investigate the financial transactions of nongovernment organizations (NGOs) and microcredit entities operating in the country “to unearth any kind of money laundering.” The Prime Minister’s Office (PMO) will also evaluate existing regulations designed to prevent money laundering and recommend reforms. This initiative is in line with recommendations from the Financial Action Task Force (FATF), an international agency based in France that monitors money laundering and terrorism financing. FATF’s report on Bangladesh’s NGO sector detected potential cases of unethical activities and urged the government to implement measures to combat terror financing and money laundering to avert a downgrade from “grey” to “dark grey,” a level indicating government failure to address strategic financial deficiencies.

As of 2012,Bangladeshhas approximately 2,000 listed NGOs, 619 of which are registered as microfinance institutions (MFIs).

By Brendan Millan, Research Associate

About Financial Action Task Force (FATF): Formed in 1989, FATF is an international agency based in France that monitors money laundering and terrorism financing. As of 2012, its membership is made up of 34 countries and territories and two regional organizations.

Prime Minister’s Office (PMO) of Bangladesh: PMO is the office of the head of government of Bangladesh. As of 2012, PMO is in charge of six agencies: Board of Investment, NGO Affairs Bureau, National Security Intelligence, Bangladesh Export, Processing Zone and Special Security Force.

Sources and Resources:

[1] The Financial Express: “NGO’s Financial Transaction to Come under Surveillance” by Nazmul Ahsan. http://www.thefinancialexpress-bd.com/more.php?news_id=128048&date=2012-04-28

MicroCapital.org story, April 24, 2012, “MICROCAPITAL BRIEF: Bangladeshi Government to Investigate Muhammad Yunus, Social Businesses Associated With Microfinance Institution Grameen Bank”, https://www.microcapital.org/microcapital-brief-bangladeshi-government-to-investigate-muhammad-yunus-social-businesses-associated-with-microfinance-institution-grameen-bank/

MicroCapital.org story, September 21, 2009, “PRESS RELEASE: CGAP Releases Focus Note: AML/CFT: Strengthening Financial Inclusion and Integrity”, https://www.microcapital.org/press-release-cgap-releases-focus-note-amlcft-strengthening-financial-inclusion-and-integrity/

MicroCapital Universe Profile: Financial Action Task Force (FATF),  https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Financial+Action+Task+Force+%28FATF%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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