Money Laundering is nothing but transferring and receiving money, assets or properties concealing the actual source and investing them in disguised financial activities that create social crimes, illegal transaction of money and it also accelerates terrorism in the broader sense. Money laundering may be nationally and internationally and it has some characteristics in the sense of transaction.
Money may be laundered from a foreign agent to local agent or from a country to a supporting organization or to an individual. It can be done between two countries or between two persons in the same countries. What the common tendency we notice is that the laundered money is deposited first and then separated. And finally the laundered money gets mixed with legal or white or clean money. The reason behind it is to hide the actual source of the money.
Money laundering in Bangladesh
In Bangladesh money is laundered in massive scale. Bangladesh Bank, the central Bank and only responsible bank to monitor, find out the money laundering and present the money laundering accused person before laws has no sufficient statistics how much money or how frequently money is laundered. Many workers and skilled professional persons are working in many countries in the world including Middle East countries. They to avoid government taxes transfer their money to their nearest persons living here in Bangladesh having this unlawful means. Besides there are many international criminal organizations which have their wings in the country and they send money them in this way so that none can trace the actual source and motive of the transferred money. Within the country corruption is another much talked means of money laundering because every year a lot of money is exchanged in an unauthorized manner. This is also considered as money laundering in the eyes of law in the country.
Effects of Money laundering in Bangladesh
The effects of money laundering in Bangladesh is out of assessment because the responsible organizations can hardly determine who is laundering money and who or which organizations are getting the money and what they are doing with the money.
There are two types of money laundering- one is not to pay government tax revenue which is mostly done by our workers working deferent countries in world. Another is targeted to illegal investing and illegal activities.
The first one is not much destructive but government loses huge amount of tax revenues every year. The second one is not only initial crime but it also gives birth to so many crimes and makes financial instability in the country.
The laundered money is invested in the disguised companies. The profit the companies make is used for some black listed or banned organizations. These organizations with their activities pose clear threat towards the country’s security and stability.
The laundered money is also used for drug smuggling, arms business and illicit activities.
Laws to prevent money laundering in Bangladesh
Like most of the countries in the world Bangladesh following Vienna Convention has taken many steps and signed international treaties to prevent money laundering and terrorist activities. Bangladesh has been a founding member of Asia Pacific Group on Money Laundering (APG) and the first South Asian country to implement Money Laundering Prevention Act in 2002.
In Bangladesh money laundering cases can be trailed under Money Laundering Prevention Act 2002. Bangladesh Bank or any person given responsibilities by Bangladesh Bank can investigate such kind of cases. Anti Corruption Commission can also look into money laundering cases. Bangladesh Bank having suspicion of any amount of money of any individual or organization can freeze the amount for 30 days and it can be extended for another 30 days if needed.
According to article 4(2) of Money Laundering Prevention Act 2002 a person accused of Money laundering will receive imprisonment in between six month to seven years.