Prevention of Money Laundering

Money laundering is a term for process used by criminals in order to hide the source of funds that come from illegal activities or criminal offence. With the technological development, various types of offences are increases rapidly and money laundering is one of those which are increasing at an alarming rate in Bangladesh.

Money laundering has potentially devastating economic, security and social consequences. It provides the fuel for drug dealers, corrupt public officials and others to operate and expand their criminal enterprises. Generally money is laundered through currency exchange, stock brokerage houses, gold dealers, casinos, automobile dealerships etc.

The offences of money laundering are seriously takes effects as follows: Economic instability and distortion, loss of revenue, loss of control of economic policy, undermining the legitimate private sectors, undermining the integrity of financial markets, increase of crime and corruption, transfers economic power from the market, government and citizens to criminals.

Due to the high integration of capital markets, money laundering can also adversely affect currencies and interest rates. Ultimately, laundered money flows into global financial systems. Furthermore, the sheer magnitude of the economic power that accrues to criminals from money laundering has corrupted effects on all elements of society. In extreme cases, it can lead to the virtual take-over of legitimate government. Money laundering is thus not only a law enforcement problem, it posses a serious national and international security threat as well.

There is an Act namely The Money Laundering Prevention Act, 2012 and accordingly the duty to prevent money laundering is rest upon the Anti Corruption Commission (ACC). But the law is not sufficient alone to prevent money laundering without strict application of the law. 

So, it is high time to take steps to prevent money laundering from Bangladesh. Thus following initiatives may be taken to prevent money laundering- Enforcement of the laws strictly, increasing the power of Anti Corruption Commission as per its necessity, Campaigning regarding the negative aspects of money laundering and creating separate cell to prevent money laundering.