Terminologies used for AML & CFT Program


Terminologies used for AML & CFT Program
As Bangladesh continues to strengthen its financial integrity framework, banks and financial institutions must stay updated with the latest Anti-Money Laundering (AML) and Counter-Terrorist Financing (CFT) regulations. The Bangladesh Financial Intelligence Unit (BFIU) and Bangladesh Bank have introduced stricter measures in 2025 to combat emerging risks, including crypto-related laundering, trade-based money laundering (TBML), and digital fraud. Below is a comprehensive guide to key AML/CFT terms and regulatory updates from a Bangladesh perspective.

Key AML/CFT Terms & 2025 Updates for Bangladesh

1. Regulatory Bodies & Frameworks

  • BFIU (Bangladesh Financial Intelligence Unit) – The central agency enforcing AML/CFT compliance, now using AI-powered goAML 2.0 for suspicious transaction monitoring.

  • FATF Compliance – Bangladesh remains on the FATF Grey List (2025), requiring enhanced beneficial ownership transparency and VASP (Virtual Asset Service Provider) regulations.

  • AML Act 2012 (Amended 2024) – Now includes crypto assets, digital wallets, and stricter penalties for non-compliance.

  • Anti-Terrorism Act (ATA) 2009 (Amended 2023) – Expands counter-terror financing measures, including real-time asset freezing for UN-sanctioned entities.

2. Mandatory Reporting & Compliance

  • CTR (Cash Transaction Report) – Threshold remains Tk 10 lakh, but digital transactions above Tk 5 lakh now require additional scrutiny.

  • STR (Suspicious Transaction Report) – Must include crypto transactions, shell company red flags, and unexplained wealth.

  • SAR (Suspicious Activity Report) – New 2025 BFIU Circular mandates reporting for PEPs (Politically Exposed Persons) with unexplained fund movements.

3. Emerging Risks & New Regulations

  • Crypto & Virtual Assets – Bangladesh Bank bans crypto trading (2025), but VASPs must still report suspicious digital wallet activity.

  • Trade-Based Money Laundering (TBML) – Banks must now verify trade invoices and monitor over/under-invoicing under BFIU’s 2025 TBML Guidelines.

  • Environmental Crime & Wildlife Trafficking – Now classified as predicate offenses under AML Act amendments (2024).

  • AI & Machine Learning – BFIU’s new AI-driven FIU Portal detects mule accounts, layering schemes, and deepfake fraud.

4. Customer Due Diligence (CDD) Updates

  • KYC (Know Your Customer) – Biometric verification mandatory for high-risk accounts (2025 BFIU Rule).

  • EDD (Enhanced Due Diligence) – Required for PEPs, NGOs, and offshore company dealings.

  • UBO (Ultimate Beneficial Ownership) – New 2025 Company Act requires live UBO registers for all corporate clients.

5. Sanctions & Watchlists

  • UN Sanctions List – Banks must freeze assets of terror-linked entities within 24 hours.

  • OFAC & BFIU Blacklist – Expanded in 2025 to include cybercriminals and TBML networks.

What’s New in 2025?

✅ Stricter Crypto Controls – Ban on trading but mandatory STRs for digital asset movements.
✅ AI-Powered AML – BFIU’s new FIU Portal automates STR/CTR filings.
✅ Environmental Crimes as Predicate Offenses – Now part of AML Act.
✅ Real-Time UBO Verification – Mandatory for all corporate accounts.

Conclusion

Bangladesh’s AML/CFT framework is rapidly evolving to counter digital financial crimes, TBML, and terror financing. Banks must adopt AI-driven monitoring, stricter KYC, and real-time sanctions screening to avoid penalties. Staying compliant with BFIU and FATF guidelines is crucial for Bangladesh’s financial sector stability.


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