MD, anti-money laundering chief must jointly sign inspection reports, show-cause replies: BB

Bangladesh Bank has made the joint signatures of managing directors (MDs) or chief executive officers (CEOs) and chief anti-money laundering compliance officers (CAMLCOs) mandatory on inspection reports, special financial statements and replies to show-cause notices submitted by banks, finance companies and mobile financial service (MFS) providers.

The central bank's Bangladesh Financial Intelligence Unit (BFIU) issued a circular on Sunday (20 September) and sent it to the MDs and CEOs of all scheduled banks, finance companies and MFS providers.

The circular said Bangladesh Bank conducts regular and special inspections to oversee anti-money laundering and combating the financing of terrorism (AML/CFT) activities and assess compliance at banks, finance companies and MFS providers.

Following these inspections, institutions may be asked to reply to show-cause notices or provide explanations and information on various issues.

However, Bangladesh Bank has recently found that compliance reports and explanations on such matters were being submitted without the signatures of the institutions' chief executives. The central bank said such practices are inconsistent with institutional governance and compliance frameworks.

Under the new directive, compliance reports submitted in response to Bangladesh Bank inspection reports, special financial statements, replies to show-cause notices and other explanations must carry the joint signatures of the MD/CEO and CAMLCO.

If the MD/CEO is absent, a legally authorised person may sign the documents in accordance with applicable rules.

Bangladesh Bank said the directive was issued under the Bank Company Act, 1991 (amended in 2023), the Finance Company Act, 2023, and the Payment and Settlement Systems Act, 2024.

The circular said the directive will take immediate effect.