BSS, Dhaka :
The developed economies should remain cautious in applying the anti-money laundering and counterterrorism financing (AML/CTF) regulations so their efforts would not turn out as counterproductive, Bangladesh Bank (BB) Governor Dr Atiur Rahman said.
The central bank chief was pointing out some drawbacks of swift application of AML/CTF regulations by some advanced economies as he was participating in a dialogue on “Remittances: Maximizing flows and reducing costs” at the annual Commonwealth and Francophonie Dialogue with the G20 at Washington DC on Tuesday, according to a BB press release issued here today (Wednesday).
“The recent “de-risking” tendency of banks in advanced economies by closing down accounts of non-bank remittance intermediaries on the ground of high-cost burden of AML/CTF compliance has become a major concern for the remittance receiving developing countries,” said Dr Rahman, who was one of the lead speakers at the programme.
He called for immediate engagement of regulatory authorities in advanced economies to ensure proportionate application of AML/CTF regulations and in dissuading their banks from such “de-risking”.
Otherwise, he said, the current spate of de-risking would lead to exclusion of foreign workers from formal financial services and force them take risk in sending their remittances through shadow channels, thereby counterproductively heightening AML/CTF risks.
The session was chaired by Robert Owen-Jones, Assistant Secretary, Department of Foreign Affairs and Trade, Australia. Emily Rose Adeleke, Financial Sector Specialist, Financial Market Integrity of the World Bank presented the position paper.
Jwala Rambrran, Governor, Central Bank of Trinidad and Tobago and Haron Sirima, Deputy Governor, Central bank of Kenya were the other lead speakers in the session.
Dr Rahman also participated in the Priority Development Challenges session of the dialogue when he gave a clear picture on the inclusive and environmentally sustainable options for food and energy security as the development priorities for CW and Francophonie developing countries. Deodat Maharaj, Deputy Secretary General, Commonwealth Secretariat, chaired the session.
He also took part in another session of discussion on a paper titled “Delivering Inclusive Value Chains” authored by Dr Mohammad Razzaque, Head of Trade Policy in the Commonwealth Secretariat.
The developed economies should remain cautious in applying the anti-money laundering and counterterrorism financing (AML/CTF) regulations so their efforts would not turn out as counterproductive, Bangladesh Bank (BB) Governor Dr Atiur Rahman said.
The central bank chief was pointing out some drawbacks of swift application of AML/CTF regulations by some advanced economies as he was participating in a dialogue on “Remittances: Maximizing flows and reducing costs” at the annual Commonwealth and Francophonie Dialogue with the G20 at Washington DC on Tuesday, according to a BB press release issued here today (Wednesday).
“The recent “de-risking” tendency of banks in advanced economies by closing down accounts of non-bank remittance intermediaries on the ground of high-cost burden of AML/CTF compliance has become a major concern for the remittance receiving developing countries,” said Dr Rahman, who was one of the lead speakers at the programme.
He called for immediate engagement of regulatory authorities in advanced economies to ensure proportionate application of AML/CTF regulations and in dissuading their banks from such “de-risking”.
Otherwise, he said, the current spate of de-risking would lead to exclusion of foreign workers from formal financial services and force them take risk in sending their remittances through shadow channels, thereby counterproductively heightening AML/CTF risks.
The session was chaired by Robert Owen-Jones, Assistant Secretary, Department of Foreign Affairs and Trade, Australia. Emily Rose Adeleke, Financial Sector Specialist, Financial Market Integrity of the World Bank presented the position paper.
Jwala Rambrran, Governor, Central Bank of Trinidad and Tobago and Haron Sirima, Deputy Governor, Central bank of Kenya were the other lead speakers in the session.
Dr Rahman also participated in the Priority Development Challenges session of the dialogue when he gave a clear picture on the inclusive and environmentally sustainable options for food and energy security as the development priorities for CW and Francophonie developing countries. Deodat Maharaj, Deputy Secretary General, Commonwealth Secretariat, chaired the session.
He also took part in another session of discussion on a paper titled “Delivering Inclusive Value Chains” authored by Dr Mohammad Razzaque, Head of Trade Policy in the Commonwealth Secretariat.
