Who regulates AML and sanctions compliance in Bangladesh?

Bangladesh Bank and its Financial Intelligence Unit (FIU) are the primary AML regulators, with additional oversight from the Securities and Exchange Commission (SEC) and the Insurance Development and Regulatory Authority (IDRA).

What are the key AML and KYC obligations for businesses in Bangladesh?

Businesses must conduct risk-based customer due diligence, verify beneficial owners above 25% ownership, report STRs and CTRs to the FIU, and retain customer records for at least five years.

What is a Suspicious Transaction Report (STR) in Bangladesh?

An STR is a report that must be filed with the FIU when a transaction appears to involve money laundering, terrorist financing, or other suspicious activity. Prompt reporting is required under the law.

Are fintech and mobile financial services regulated for AML in Bangladesh?

Yes. Fintechs and mobile financial service providers are regulated under Bangladesh’s AML laws and must implement robust KYC, transaction monitoring, and reporting programs.

How can Anqa Compliance support businesses in Bangladesh?

Anqa offers Bangladesh-specific compliance solutions including eKYC, sanctions screening, trade finance risk tools, and centralized compliance case management aligned with local AML regulations.

Bangladesh AML & Sanctions Compliance - ANQA

Bangladesh AML & Sanctions Compliance

Navigate Bangladesh's evolving financial regulatory landscape with Anqa's comprehensive compliance solutions designed for South Asia's growing financial sector.

Regulatory Framework

Bangladesh's AML/CFT framework is primarily governed by the Money Laundering Prevention Act, 2012 and supporting regulations issued by:

Bangladesh Bank - Central bank and primary regulator
Financial Intelligence Unit (FIU) - Financial intelligence unit
Securities and Exchange Commission (SEC) - Securities regulator
Insurance Development and Regulatory Authority (IDRA) - Insurance regulator

FATF Status

★ ★ ★ ★ ★

Partially Compliant

Bangladesh is a member of the Asia/Pacific Group on Money Laundering (APG). The country has made significant progress in strengthening its AML/CFT framework but continues to work on addressing technical deficiencies and improving the effectiveness of its system.

Compliance Requirements

Core Obligations

CDD/KYC: Financial institutions must conduct risk-based customer due diligence. Enhanced due diligence required for high-risk customers, including PEPs and non-resident customers.
Beneficial Ownership: Requirements to identify and verify beneficial owners with a threshold of 25% ownership or effective control. Implementation has been strengthened in recent years.
Transaction Monitoring: Financial institutions must implement automated systems to detect suspicious transactions, with specific attention to remittance flows and trade finance.
Record Keeping: Minimum 5-year retention period for all customer records and transactions.
Reporting: Suspicious Transaction Reports (STRs) must be filed with the FIU. Cash Transaction Reports required for transactions exceeding 1 million taka (approximately $9,000).

Key Challenges

Remittance Flows: Large volume of remittances requiring sophisticated monitoring and risk assessment.
Trade Finance: Complex trade finance transactions requiring enhanced due diligence.
Digital Financial Services: Rapid growth of mobile financial services requiring adaptive compliance approaches.
Implementation Gaps: Inconsistent application of AML/CFT requirements across different financial sectors.
Enforcement Capacity: Limited resources for supervision and enforcement despite strengthened legal framework.

Sanctions Considerations

Bangladesh implements UN sanctions through domestic legislation. Financial institutions must maintain vigilance with respect to transactions linked to terrorism financing and proliferation financing risks.

Financial institutions should apply enhanced due diligence to transactions involving high-risk jurisdictions and sectors, particularly in trade finance and remittance flows.

Key Compliance Challenges

Understanding the unique obstacles facing financial institutions in Bangladesh

Remittance Flows

Large volume of remittances from overseas workers requires sophisticated monitoring and risk assessment to detect potential money laundering and terrorist financing risks.

Trade Finance

Complex trade finance transactions, particularly in the garment and textile sectors, require enhanced due diligence and monitoring to prevent trade-based money laundering.

Digital Financial Services

Rapid growth of mobile financial services and digital banking requires careful management of new payment channels while ensuring compliance with AML regulations.

Implementation Gaps

Inconsistent application of AML/CFT requirements across different financial sectors creates challenges in maintaining uniform compliance standards.

Enforcement Capacity

Limited resources for supervision and enforcement despite strengthened legal framework, requiring financial institutions to implement robust internal controls.

Beneficial Ownership

Complex corporate structures and nominee arrangements create challenges in identifying and verifying ultimate beneficial owners, particularly in trade finance.

Anqa's Approach for Bangladesh

Our comprehensive AML solution tailored for Bangladesh's unique regulatory landscape and market requirements.

Digital KYC & Onboarding Platform

Electronic KYC integration with Bangladesh's national ID system, centralized repository, and assisted onboarding tools for agents and field staff.

Customer Risk Assessment Engine

Five-dimensional risk classification with Bangladesh-specific parameters and behavior-driven risk adjustments aligned with local regulatory requirements.

Sanctions & Watchlist Screening

Comprehensive screening with Levenshtein and phonetic matching algorithms optimized for Bangladesh's naming conventions and local watchlists.

Trade Finance Compliance

Specialized compliance tools for trade finance with enhanced monitoring of high-risk transactions and supply chain payments.

Compliance Workflow Platform

Centralized case management with customizable workflows aligned with Bangladesh's regulations and reporting requirements.

Deployment & Pricing

No setup fees, modular pricing, cloud-based with scalable licensing (user or transaction-based).

🇧🇩 Bangladesh — AML & Compliance FAQs

AML compliance in Bangladesh is regulated by the Bangladesh Financial Intelligence Unit (BFIU) under the Bangladesh Bank, alongside oversight from sector-specific regulators.
Under the Money Laundering Prevention Act, 2012, businesses must implement KYC policies, monitor transactions, file Suspicious Transaction Reports (STRs), and conduct sanctions screening.
An STR must be filed with BFIU when there is suspicion of transactions linked to criminal activity, money laundering, or terrorism financing, even if the transaction was not completed.
Yes. Fintechs, mobile financial services (MFS), and digital payment providers must meet BFIU’s AML/CFT compliance requirements, including CDD, transaction monitoring, and reporting.
Anqa Compliance offers scalable compliance solutions for Bangladeshi businesses, making KYC onboarding, sanctions screening, and AML reporting simple and affordable.

Dig Deeper – Country Compliance in Focus

Gain country-specific expertise with Anqa’s tailored AML and sanctions intelligence. Leverage our technology, risk-based strategies, and deep regional knowledge to stay ahead of regulatory expectations.

View Country Compliance Profile