Anti‐Money Laundering Department

Bangladesh Bank
Head Office
Dhaka.
Website: www.bangladeshbank.org.bd

AML Circular No: 27 Date: 15 June, 2011

Chief Executive/Managing Director

All Non Profit Organizations and Non Government Organizations

Dear Sir,
Instructions to be followed by the Non Profit Organizations and Non Government Organizations
to comply with the provisions of Money Laundering Prevention Act, 2009.

In pursuance of section 2(l) (vii) Money Laundering Prevention Act, 2009 Non Profit
Organizations (NPO) and Non Government Organizations (NGO) functioning in Bangladesh have
been included in the list of reporting agencies by the gazette notification no. AMLD‐01/2010 BB
dated 30 September, 2010 which has been circulated through the AML circular no. 26 dated 30
September, 2010. As per the gazette notification Non Profit Organization/Institution means any
organization or institution licensed or registered under section 28 of the Companies Act
(Bangladesh)‐1994 and Non Government Organization means organization or institution licensed or
registered under the Voluntary Social Welfare Agencies (registration and control) Ordinance‐1961,
the Co operative Societies Act‐2001, the Societies Registration Act‐1860, the Foreign Donation
(Voluntary activities) Regulation Ordinance‐1978, the Foreign Contributions (Regulation) Ordinance,
1982 and Microcredit Regulatory Authority Act‐2006
02. The powers and responsibilities of Bangladesh Bank in preventing and combating money laundering
and the responsibilities of the reporting agencies have been delineated respectively in section 23
and 25 of Money Laundering Prevention Act, 2009. Instructions of this circular are issued pursuant
to section 23 of Money Laundering Prevention Act, 2009 for compliance of the provisions of the said
Act by the Non Profit Organizations and Non Government Organizations.
03. Instructions:
a) Each NPO/NGO shall formulate Anti Money laundering (AML) and Combating Financing of
Terrorism (CFT) policy and have it approved by their Board of Directors/ top most committee for
proper compliance of the provisions of the Money Laundering Prevention Act, 2009. Each
NPO/NGO shall nominate a senior level officer as a contact point to communicate with
Bangladesh Bank to facilitate the AML/CFT procedures properly. The name, designation, contact
address, telephone number, fax and e‐mail address of the officer concerned are to be provided
to Bangladesh Bank by each NPO/NGO.
b) Each NPO/NGO shall :
i) preserve information relating to their goals, objectives and functions in details.
ii) collect and preserve the correct and complete information of identification of those who
control or direct the activities of the organization (senior management, members of the
Board of Directors, Executive Committee, Trustee Board or others) in details with supporting
documents.
[Information preserved under subpara (i) & (ii) shall be made publicly available]
iii) preserve the audited annual financial statement, explanatory notes of each sector and all
information with supporting documents related to it at least for 5(five) years.
iv) collect and verify the identification information, relevant experience and other involvements
of the selected candidates before recruitment.
v) preserve details information relating to the functions of their foreign branches (where
applicable) and also preserve the updated information of the officers/staff working there.

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 vi) collect correct and complete information of identification with supporting documents of
those customers who have outstanding loan of Tk. 75,000/‐ (Seventy Five Thousand) or
above or deposit balance of Tk. 50,000/‐ (Fifty Thousand) or above and verify the
authenticity of the information/documents and preserve it. They also preserve the
identification information/documents of the customers and records of transactions for at
least 5(five) years from the date of closure of the relationship with the customer. However,
organization that receives foreign aid/grant/donation/loan shall follow the rules delineated
in this subpara irrespective of the amount of outstanding loan or deposit balance.
[Here ‘Customer’ means beneficiary/beneficiaries of NPO/NGO such as any person, group
of people, other NPOs/NGOs or any other organization]
c) All customers’ transactions of NPOs/NGOs involving Tk. 1,00,000/‐ (One Lac) and above shall
have to be routed through banking channel.
d) The senior management, members of the Board of Directors, Executive Committee, Trustee
Board and others (where applicable) shall ensure that all funds are spent in a manner that is
consistent with the stated goals, objectives and activities of the NPO/NGO (Annual Independent
Audit shall have to be conducted in this regard).
e) The senior management or the Board of Directors (where applicable) shall conduct a
quarterly meeting with the officers of their organization on combating money laundering and
financing of terrorism and also arrange training program for all of their officers. They shall
maintain the record of the meeting and the training conducted.
f) No NPO/NGO functioning in Bangladesh shall receive any fund from any person or
organization listed under the resolutions of United Nations Security Council (all other resolutions
including UNSCR‐1267 and UNSCR‐1373). While receiving funds from any country or any person
or organization of country under the Public Statement of Financial Action Task Force (FATF),
Enhanced Due Diligence (EDD) shall have to be ensured considering the risk. Furthermore,
NPO/NGO shall collect the correct and complete identification information and supporting
documents of their donors.
[List of persons or organizations under the resolutions of United Nations Security Council
is available in www.un.org/sc/committees/1267/consolist.shtml and countries listed
under the Public Statement of FATF is available in www.fatf‐
gafi.org/document/36/0,3746, en_ 32250379_32236992_46236900_1_1_1_1,00.html]
g) Each NPO/NGO having foreign aid/grant/donation/loan shall receive the clearance document
from the appropriate authority, preserve the clearance document and would not return any
amount to the donor without the prior approval of the appropriate authority.
h) Each NPO/NGO shall:
i) ensure appropriate monitoring system to ascertain that the fund given to their
customers are not used for the purpose of money laundering and financing of
terrorism. NPOs/NGOs shall report immediately to the Bangladesh Bank if any
incident or transaction identified /appears suspicious to them according to annexure‐
‘Ka’.
ii) report to the Bangladesh Bank immediately if there is any suspicion or request by any
donor in using them for such activities as are contrary to the existing AML/CFT
regime according to annexure‐‘Ka’.
i) Each NPO/NGO shall provide such information and any other papers/documents as may be
asked for by the Bangladesh Bank.
04. You are requested to ensure compliance of the instructions of this circular and bring the contents of
the circular to the notice of all concerned.
Meanwhile please acknowledge receipt.
Yours faithfully,
Enclosed: 1 (One) page. Sd/‐
(Debaprosad Debnath)
General Manager
Phone – 7120659

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 Annexure : 'Ka'

Reporting Form of Unusual / Suspicious Transaction/Activity

Reference: AML Circular No 27 dated 15/06/2011, Para 3(h)‐i,ii).
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Name of the NPO/NGO
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Official address of the head office

1. Detailed information of the suspected person/ institution in the case of the unusual / suspicious
transaction/activity :

2. Description of Unusual/Suspicious Transaction/activity:

a) Amount of Money Involved:
b) Dates of Transaction:
c) Name/Branch of the organization where the Unusual/Suspicious Transaction/Activity
has occurred:

3. Reasons/Situations for Treating the Transaction/Activity as Unusual/Suspicious Transaction:

4. Other Information:

Signature of the Officer (Contact Point):

Name of the Officer:
Time:
Date: