Each company must adopt own policy: BFIU

The Bangladesh Financial Intelligence Unit (BFIU) has directed all insurance companies to put in place measures against money laundering and terrorist financing, requiring each to set up a central compliance unit, verify customer identities, monitor suspicious transactions and preserve records.

The instructions were issued through Bangladesh Bank on Monday under the Money Laundering Prevention Act, 2012, and the Anti-Terrorism Act, 2009. All insurers must comply.

Each company must adopt its own policy, approved by its board of directors or highest decision-making body.

The chief executive officer must also issue an annual commitment to employees and agents and ensure the policy is implemented.

A central compliance unit headed by a senior official must be formed at every head office.

The Chief Anti-Money Laundering Compliance Officer (CAMLCO) will lead the unit and supervise the company’s anti-money laundering and counter-terrorist financing work.

The unit must prepare an annual report for January to December covering progress, evaluations and recommendations.

The report, with the CEO’s comments, must go before the board or top management committee, and a copy must reach the BFIU by February of the following year. Compliance must also be boosted at the branch level.

Every branch and unit must appoint a compliance officer with at least three years of experience, and designated officers must be named to oversee compliance for insurance agents.