The government is likely to amend a number of laws related to money laundering and terror financing, the finance minister, Abul Maal Abdul Muhith, said on Tuesday.
After a meeting held in this connection on the day, he told reporters that the amendments would stop the flow of illegally transacted money into the market and help the government to bring back money that has been siphoned off.
The government is going to amend the statutory regulatory order under the Income Tax Ordinance 1984 in keeping with the directive of the Asia Pacific Group on Money Laundering, the Mutual Legal Assistance Act and the Anti-Terrorist Financing Act.
It will also enact a fresh law called the Anti-Money Laundering Act 2011, replacing the existing one.
After the amendment to the SRO, the authorities concerned by way of the anti-money laundering act and Anti-Terrorist Financing Act would be able to investigate sources of undisclosed money even after the National Board of Revenue allows the money to enter the the market after the payment of 10 per cent of the amount in tax.
Muhith said that the draft of the amendment to the SRO under the Income Tax Ordinance had been sent to the law ministry for vetting. He added that the amendment would soon be enacted.
The drafts of the anti-money laundering act 2011 and the Anti-Terrorist Financing Act have been prepared in accordance with a review of the action plan prepared by the Financial Action Task Force.
The drafts of the two laws, along with that of the proposed mutual legal assistance act are with the law ministry for vetting.
As for mutual legal assistance act, the finance minister said that it would allow the government to exchange information with other countries.
The Financial Action Task Force, an international anti-money laundering watchdog, earlier worked out a charter of activities for Bangladesh to improve its anti-money laundering activities.
The APG on Money Laundering, which is closely affiliated to the task force, has raised concerns as some provisions in the existing SRO would increase money laundering after the government announced allowing undisclosed money, which could be invested in three areas - share market, government treasury and investment bonds, and commercially-run mass transports - after the payment of 10 per cent of the amount in tax.
The APG on Money Laundering is composed of 41 members and a number of international and regional observers, including the United Nations, International Monetary Fund, Financial Action Task Force, the Asian Development Bank and the World Bank.
Source : New Age
