BFIU orders banks to flag linked accounts

The Bangladesh Financial Intelligence Unit (BFIU) has directed banks and other reporting agencies to immediately provide details of accounts linked to any account ordered to be frozen.

The directive was issued on Wednesday through a circular to the managing directors and chief executive officers of all reporting agencies as part of efforts to prevent money laundering and terrorist financing.

Under the directive, once a reporting agency receives a BFIU order to freeze an account, it must provide the unit with the reasons for the freeze as well as details of other accounts linked to the same person or entity.

The BFIU said the requirement is aimed at preventing criminals from shifting or dispersing illicit funds across multiple accounts after one account is frozen.

The directive cites Rule 26(4) of the Money Laundering Prevention Rules, 2019, which requires reporting agencies to provide information on the basis of a freeze and other accounts linked to the frozen account when instructed by the BFIU.

The circular was issued under Section 23(1)(d) of the Money Laundering Prevention Act, 2012 and Section 15(1)(d) of the Anti-Terrorism Act, 2009.

The BFIU said the measure will strengthen monitoring of related accounts and help authorities trace funds connected to money laundering or terrorist financing when such funds are transferred through multiple accounts.