DEFINITION OF A CUSTOMER IN THE COMMERCIAL BANK


The term 'customer' of a bank is not defined by law. Ordinarily, a person who has an account in a bank is considered its customer. Banking experts and the legal judgements in the past, however, used to qualify this statement by laying emphasis on the period for which such account had actually been maintained with the bank. In Sir John Paget's view "to constitute a customer there must be some recognisable course or habit of dealing in the nature of regular banking business." This definition of a customer of a bank lays emphasis on the duration of the dealings between the banker and the customer and is, therefore, called the 'duration theory'. Accord- ing to this viewpoint a person does not become a customer of the banker on the opening of an account, he must have been accustomed to deal with the banker before he is designated as a customer.


The above-mentioned emphasis on the duration of the bank account is now discarded. According to Dr. Hart, "a customer is one who has an account with a banker or for whom a banker habitually undertakes to act as such." 

"Broadly speaking, a customer is a person who has the habit of resorting to the same place or person to do business. So far as banking transactions are concerned he is a person whose money has been accepted on the footing that the banker will honour up to the amount standing to his credit, irrespective of his connection being of short or long standing."
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Different Act with Year & Amendment


Contract Act-1872

Majority Act-1875

Negotiable Instrument Act-1881

Transfer of Property Act-1882

The Bankers Book evidence Act-1891

Income Tax Ordinance-1984

Stamp Act-1899

The Registration Act—1908

The Limitation Act-1908

The Public demand recovery Act-1913

Partnership Act-1932

The Foreign Exchange Regulation Act-1947, Amendment-2015

The Bank Company Act-1991

The Company Act-1994

The Bankruptcy Act-1997

Money Loan Court Act-2003

The Insolvency Act-1997

Information and Communication Technology Act-2006

Anti-Terrorism Act-2009, Amendment-Twice-2012 & 2013

Money Laundering prevention Act-2012, Amendment-2015

Master Circular-10- December 28, 2014


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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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