Money Laundering Prevention Act- 2012
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The document is a summary of the Money Laundering Prevention Act of 2012 in Bangladesh. It defines key terms related to money laundering such as proceeds of crime, predicate offense, and suspicious transactions. It outlines reporting requirements for financial institutions and gives investigation and enforcement powers to agencies such as the Anti-Corruption Commission. Penalties for money laundering and related offenses include imprisonment, fines, and property confiscation. The act also describes international cooperation measures between Bangladesh and other countries.
Money Laundering Prevention Act- 2012
- 3. The laundry literally means “cleaning”. The act comes into force on 16 January, 2012 Money Laundering Prevention Act (MLPA)- 2012 contains 31 sections. What is Money Laundering? Metaphorically, money laundering refers to “cleaning on money”. Money Laundering Prevention Act- 2012
- 5. Smuggling of money or Property Money or Value Transfer Service Proceeds of crime Freeze Non-profit organization/ institution i)transfer or holding money or property outside the country,. ii)repatriating money or property from abroad. iii)not bringing into the country the actual dues from a foreign country. a financial service in which the service provider receives currency, cheques, other financial instruments (electronic or otherwise)in one location, and provides the beneficiary with the equal value in currency. any property obtained or derived, directly or indirectly, from a predicate offence or any such property retained or controlled by anybody. any action taken by the competent authorities pursuant to this Act by which any property is brought within the control of the relevant authorities any institution registered under section 28 of the Company Act,1994(Act XVIII of 1994).
- 6. Financial Instrument Financial Institution Court Attachment Customer all papers or electronic documents which have a financial value. a financial institution defined under section 2(b) of the Financial Institutions Act, 1993 (Act No. XXVII of 1993) the court of a special judge. any action taken by the court pursuant to this Act by which any property is restrained or held by the relevant authorities. any person or persons or entity or entities at may be defined by Bangladesh Bank from time to time.
- 7. Trust & Company Service Providers Investigation Agency Cash Disposal Confiscation any persons or business institution that is not defined in any other laws and provides with any of the following services to any third party. the Anti Corruption Commission established under the Anti Corruption Commission Act, 2004 (Act No. V of 2004); and any officer of the Commission authorized in this behalf by it to investigate. Including coins, paper currency, travellers cheques, postal notes, money orders, cheques, bank drafts, bearer bonds, letters of credit, bills of exchange, credit card, debit card or promissory notes. the sale of property which is degradable, perishable or unsuitable for use after a certain time. the permanent transfer of the title of any property in favour of the State pursuant to a court order made under section 17.
- 8. Bangladesh Bank Insurer Non government organization Foreign currency Bank Bangladesh Bank established under the Bangladesh Bank Order, 1972 (P.O. No. 127 of 1972). an insurer defined under section 2(25) of the Insurance Act, 2010 (Act No. XIII of 2010). (i)Receive fund (loan, grant, deposit) from local sources, (ii) receive any kind of foreign donation or loan or grant. any foreign exchange defined under section 2(d) of the Foreign Exchange Regulation Act, 1947 (Act No. VII of 1947) a bank company defined under section 5(o) of the Bank Companies Act, 1991 (Act No. XIV of 1991) and it shall also include any other institution designated as a bank under any other law.
- 9. Money changer Money Laundering Reporting Organization Real Estate Developer Entity (i)bank;(ii)financial institution;(iii)insurer;(iv)money change, (v)1. stock dealer and stock broker, 2. portfolio manager and merchant banker, 3. securities custodian, 4. asset manager. any kind of legal entity, statutory body, commercial or non commercial organization, partnership firm, cooperative society or any organization comprising one or more than one person. defined under section 2(15) of Real Estate Development and Management Act, 2010 (Act No. 48 of 2010)who buying and selling of land, house, commercial building and flat. any person or institution approved by Bangladesh Bank under section 3 of the Foreign Exchange Regulation Act, 1947 (Act No. VII of 1947) for dealing in foreign exchange transactions. i)Knowingly moving, converting, or transferring proceeds of crime, ii) smuggling money or property earned through legal or illegal means to a foreign country
- 10. Predicate Offense Special Judge High Court Division A predicate offense is a crime that is a component of a more serious crime. A special judge appointed under section 3 of the Criminal Law Amendment Act, 1958 (Act No. XL of 1958. The High Court Division of the Bangladesh Supreme Court.
- 11. Section- 03… Act to override other laws Notwithstanding anything contained in any other law for the time being in force, the provisions of this Act shall, subject to the provisions of section- 9,have effect. Section- 04… Offence of money laundering and punishment (a) For the purposes of this Act, money laundering shall be deemed to be an offence. (b) punished with imprisonment at least 4 years but not exceeding 12 years and, in addition to that, a fine equivalent to the twice of the value of the property or taka 10 (c) In addition to any fine or punishment, the court may pass an order to forfeit the property which directly or indirectly involved with money laundering (d) It shall not be a prerequisite to charge or punish for money laundering to be convicted or sentenced for any predicate offence.
- 12. Section- 05… Punished with imprisonment for not exceeding 3 years or with a fine equivalent to the value of the property subject to freeze or attachment. Punishment for violation of an order for freezing or attachment Section- 06… Punishment for Divulging Information Imprisonment (not exceeding2 two years) Fine (not exceeding TK. 50 thousand) Both (Imprisonment+ Fine) Or Or Any person who contravenes the provisions of sub-sections (1) and (2) shall be punished with…
- 13. Section- 08… (1) Any person who is convicted under sub-section- 1 shall be punished with imprisonment for a term not exceeding 1 year or with a fine not exceeding taka 25 thousand or with both. Punishment for providing false information Section- 07… Any person who contravenes the provisions of sub-sections (1) and (2) shall be punished with imprisonment for a term not exceeding 1 (one) years or a fine not exceeding taka 25 (twenty five) thousand or with both. Punishment for obstruction or non-cooperation in investigation, failure to submit report or obstruction in the supply of information
- 14. Section- 09… Investigation and trial of an offence Under the Anti Corruption Commission Act, 2004 (Act No. V of 2004) and shall be investigated by the Anti Corruption Commission or any officer of the Commission empowered by it in this behalf or any officer of any other investigating agency authorized by the Anti Corruption Commission. Section- 10… Extraordinary jurisdiction of the special judge The special judge may impose such punishments as are specified for the offences under this Act, and where appropriate, may pass any other necessary order including orders for further investigation, freezing, attachment and confiscation of property. Section- 11… Cognizancy, non-compound ability and non-bail ability of offences Offences under this Act shall be cognizable, non-compoundable and non- bailable.
- 15. Section- 12… Inevitability of the approval of the Anti Corruption Commission The Code of Criminal Procedure or any other law for the time being in force, no court shall take cognizance of any offence under this Act, except with the approval of the Anti Corruption Commission Section- 13… Provisions relating to bail Any person accused under this Act shall be released on bail, if : a b the complainant is given an opportunity of being heard on the application for bail; and the court is not satisfied that there are reasonable grounds to believe that the accused shall be found guilty of the charges brought against him; or c the accused is a woman, child or physically disabled person and the court is satisfied that justice may not be hindered by reason of releasing him on bail.
- 16. Section- 14… Orders to freeze or attach The court may issue an order to freeze or attach the property on the basis of a written application The application must contain a b Full description of the property The property may be transferred if an order is not passed If the order passed, the court shall, publish an official Gazette The name of the person, parents, spouse, nationality, designation (if any), occupation, tax identification number (TIN), present and permanent addresses should be mentioned. The property can’t transferred elsewhere without the consent of court All money receivable of the person may be deposited into the frozen bank account.
- 17. Section- 15… Return of frozen or attached The person may make an application before the court for the return of the property within 30 (thirty) days The application before the court should contain the following information: The property is not involved any predicate offense. a b the applicant is not acting as a nominee the accused person or entity has no proprietary right If the court is satisfied with the application of the applicant, The applicant may return back his property. Section- 16… Appeal against the order to freeze or attach Appeal against the order to freeze or attach The appellate court shall give the parties reasonable time for being heard. The said order shall have effect pending the appeal to be disposal of, unless the appellate court directs otherwise.
- 18. Section- 17… Confiscation of property If any person is convicted, the court may pass an order for confiscation of any property. The respective court may, pass an order for the confiscation of any property. If any person dies after submitting the charge sheet, the court may pass an order for confiscation. After knowing that the property cannot be located. If any court pass an order, ownership of the property hand over the possession of the property to the State for confiscation.
- 19. Section- 18… Return of confiscated Property The person or the entity may make an application before the court for the return of the property The court shall give a reasonable time to the person who filed the case for considering the following matters. a b Whether the applicant had an involvement in the offense. Whether the applicant has a valid right to acquire the confiscated property. Section- 19… Appeal against any order for confiscation The party aggrieved by such an order may prefer an appeal against the order The appellate court shall give both the parties reasonable opportunity of being heard Section- 20… Procedure for disposal of confiscated property The Government may dispose of such property
- 20. Powers and responsibilities of Bangladesh Bank in restraining and preventing the offence of money laundering Bangladesh Bank shall have the following powers and responsibilities, namely: a b to review information related suspicious transactions received from any reporting organization ask for any information or obtain a report from reporting organizations Section- 21… Appointment of a manager or caretaker for taking care of the frozen, attached or confiscated property The court may, appoint any law enforcement agency as a manager or caretaker of the property. Section- 22… Appeal The aggrieved party by a court may prefer an appeal before the High Court Division within Section- 23…
- 21. Section- 24… Establishment of the Bangladesh Financial Intelligence Unit (BFIU) In order to exercise the power and perform the duties vested in Bangladesh Bank under section 23 of this Act, there shall be a separate unit to be called the Bangladesh Financial Intelligence Unit (BFIU) within Bangladesh Bank. The governmental, semi-governmental, autonomous organizations or any other relevant institutions or organizations shall, upon any request or spontaneously, provide the Bangladesh Financial Intelligence Unit with the information preserved or gathered by them. The Bangladesh Financial Intelligence Unit may, if necessary, spontaneously provide other law enforcement agencies with the information relating to money laundering and terrorist financing.
- 22. Section- 25… Responsibilities of the reporting organizations in prevention of money laundering The reporting organizations shall have the following responsibilities in the prevention of money laundering, namely: to maintain complete and correct information with regard to the identity of its customers during the operation of their accounts; if any account of a customer is closed, to preserve previous records of transactions of such account for at least 5(five) years from the date of such closure; to provide with the information maintained under clauses(a) and (b) to Bangladesh Bank from time to time, on its demand;(d)if any doubtful transaction or attempt of such transaction as defined under clause (n)of section 2is observed, to report the matter as suspicious transaction report to the Bangladesh Bank immediately on its own accord a b c
- 23. Section- 26… Contract with Foreign Countries The Government may enter into a contract with any foreign State under bilateral or multilateral agreements, conventions or any other means recognized by international law, If the Government enters into any contract with any foreign State under this section the Government may, for the purpose of prevention of money laundering: (a) Ask for necessary information from the foreign State or organization; and (b) provide with information asked for by the foreign State or organization if it is not a threat to national security
- 24. Section- 27… Offences committed by an entity If any offence under this Act is committed by Proprietor Staff or Representative Director or Manager who is directly involved in the offence shall be deemed to be guilty of the offence. Section- 28… Protection of actions taken in good faith No suit or prosecution or administrative measures or any other legal proceedings shall lie against Officer or Staff of Government Officer or Staff of Bangladesh Bank Staff of Anti-Corruption Commission which is done in good faith under this Actor rules made thereunder for which any person is or likely to be affected
- 25. Repeal and Savings Any action taken or any case filed or any proceeding taken under the Act and Ordinance which are pending shall be disposed of in such a manner as if it had been filed and taken under this Act. Publication of an English Text of the Act After the commencement of this Act, the Government shall, as soon as possible, by notification in the official Gazette, publish an Authentic English Text of this Act. Section- 30… Section- 31… If any offence committed or remains under investigation or trial under the Foreign Exchange Regulation Act, 1947(Act No. VII of 1947)and the Act and Ordinance, such offences shall be disposed of in such a manner as if it had been filed and taken under this Act. In case of any conflict between the Bangla Text and the English Text, the Bangla Text shall prevail.