Letter of Transmittal

To
The Supervisor
Farhana Sadia
Lecturer of Southeast University
House#64/B, Road # 18, B, Banani, Dhaka 1213

Sub: Submission of internship report

Dear Miss
With due respect, I would like to inform you that I am a students of B.B.A department batch
19th, section A, my name is Laila Alker my ID is 2008110000208. I have prepared the
opportunity to submit the Internship report according to your instructions. It is my pleasure to
submit my Internship Report on Overall Branch Banking of Al-arafah Islami Bank and an
introduction to Money Laundering. While preparing this Internship report I came to know about
several terms on banking sector. I have tried my best to present all the things to make the report
more informative and usual one. If any part of the assignments means inappropriate and
irrelevant with the subject please advise me.
I am very grateful to you for your kind and generous guidance to make the report successful.
Thank you, very much for your heartiest co-operation.
Sincerely Yours

Laila Akter
ID: 2008110000208
Batch: 19th Program: B.B.A
Major: Finance
Southeast University

ACKNOWLEDGE
MENT

I would like to acknowledge the guidance and effort of Internship and placement committee for
arranging such a nice program for co-relating theoretical learning with real life situation.
Its a pleasure to convey my heartiest gratitude and greeting to my honorable supervisor Farhana
Sadia Lecturer, School of Business studies, Southeast University (SEU). None of his cooperation it would have been possible to prepare the report into a nice ending.
I would also like to acknowledge and thanks the following personnel who has extended their
whole-hearted co-operation for preparing the report.
1)
2)
3)
4)
5)

Farhana Sadia (my supervisor)

Md. Sharif Chowdhury (AVP & manager of AIBL khilkhet branch)
Md. Nazmul Haque
Atiqur Rahman Munshi(SEO of AIBL)
Md. Omar faruq (EO of AIBL)

I am also grateful to my supervisor Farhana Sadia for his cordial supervision & support to
prepare this report. She gives me advice how can i start & finish this report.
I am also grateful to Mr. Sharif Chowdhury AVP of AIBL who gives the chance to do my interne
on AIBL in khilkhet branch.
I am also grateful Md. Nazmul Haque, Atiqur Rahman Munshi& Md. Omar faruq the always
help me to preparing this report by giving information & doing work by me.
I express my deepest gratitude and respect to the officers of Al-Arafah Islami Bank Ltd khilkhet
branch who helped me a lot during my internship period.

S.L
1.1
1.2
1.3
1.4
1.5

Content
Chapter 1: Introduction of the study
Background of the Study
Rationale of the Study
Scope of the Study
Objective of the Study
Data collection:

Page no.
1-5
3
3
3-4
4
5

Secondary source
1.6
1.8
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
2.9
2.10
2.11

Primary source
Analysis of data
Limitation of the study
Chapter 2: Organizational Overview
Organizational overview of AIBL
Historical background of AIBL
AIBL profile
Vision & Mission of AIBL
Objective of AIBL
Special feature of AIBL
Function of the AIBL
Organ grams of the AIBL
Rule of the AIBL
Present program of the AIBL
AIBL khilkhet branch

Content

S.L

Chapter 3: General Banking

3
3.1

3.2
3.2.1

Introduction
Cash section

5
5
6-17
8
8
9
9-10
10-11
11
12
13-14
15
15-16
16-17

Page
no.
18-41
20
20

Books maintained this section

20

Function of cash department

21

Cheque or cash payment process

Account section
Account opening process

21
22
22-24

3.2.2
3.2.3
3.2.4
3.3
3.3.1
3.3.2
3.3.3
3.4
3.4.1
3.4.2

Types of account
Scheme based account
AIBL schedule of charges
Clearing section
Types of clearing
Essential elements for clearing
Clearing department
Remittance section
Foreign remittance

24-25
25-29
30-32
32-33
33
34
35
35
35

Money gram
Local remittance

36
36

Demand Draft

36-37

Pay order

37-38

Telegraphic Transfer
Other service section

3.5

38-39
40

Locker service

S.L
4
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.8.1
4.9
4.9.1
4.10
4.11
4.12
4.13

40

Content
Chapter 4: Investment & Money laundering
Introduction
Definition of investment
Investment modes of AIBL
Investment AIBL khilkhet branch
Investment decision
Process of loan
Investment authority
Credit information bureau
Rules for CIB in Bangladesh
Function of CIB
Credit risk analysis for investment
Use of Credit Risk Grading
Documentation
Credit disbursement

Investment Assessment
Money laundering

Page no.
42-72
44
44
44-46
47-52
52-53
54
55
56
56
56
57
57
58
58
58-61
62-63

4.14
4.15
4.16
4.17
4.18
4.19
5. 1
5.2
5.3
5.4
5.5

SL
Table 1
Table 2
Table 3

Reasons of Money Laundering

Impact of money Laundering
Affect Of Money Laundering in business/ economic development
Stages of Money Laundering
Symptom of money laundering
Penalties for Money laundering
Chapter 5: Finding, Analysis, Recommendation& Conclusion
Finding
Analysis
Recommendation
Suggestions for money laundering
Conclusion

Name of table

63
63-66
66
66-67
67-71
71-72
73-80
75
76
77
77-78
79-80

Profit Rate for SND

Year, monthly installment& estimate return after maturity for

Page no
21
25
26

Table 4

Mudaraba Lakhopati scheme

Year, monthly installment& estimate return after maturity for

27

Table 5
Table 6
Table 7
Table 8
Table 9
Table 10
Table 11
Table 12
Table 13
Table 14

kotipati scheme
Charges and fees for on line accounts
Account Maintenance Fee
Minimum Deposit for opening Account
Minimum Balance in the Account
Dormant Account re opening charge
Charge for issuing Cheque book
Account Closing Charge
Account Statement charge
Different cheque clearing process
Commission for demand draft

30
31
31
31
31
32
32
32
34
36

Table 15
Table 16
Table 17
Table 18
Table 19
Table 20

Commission & VAT for pay order

Charge for issue Telegraphic Transfer
Locker Facility Charge
Auxiliary Service Charge
Process of loan
Stage of money laundering

38
39
40
41
54
67

Function of cash department

Abstracts
Al Arafah Islamic bank Ltd is one of the promising banks practicing Islamic banking system in
Bangladesh. It has started its activities from 28 th August 1995. It is operating al most al kind of
common banking activities. Its operating system is free from the interest. It is operating activities
by the shariah guideline.
Through this Internship report an attempt has been made to assess the performance of Al-Arafah
Islami Bank Limited (AIBL). Basically this report has been developed from the basis of
secondary data. The sources of information are annual report of the bank, internet,officers of
AIBL. My work in this bank also helps me to establish this report.
Banking is a system of intermediation. Modern commercials banks since their early days had
been doing two main functions. These are Acceptance of deposits from the public and lending
money to the people.
Now this report I have discussed about the overall branch banking practice by the Al Arafah
Islamic bank ltd. here I have discussed about general banking & investment of AIBL in khilkhet
branch.
In this report I have also discussed about the money laundering .here I have focused on the
reasons of ML, Social and economical impact of ML, Symptom or which raise the suspicion of
ML.
From the case study of AIBL I have identified some problem of the bank and according to that I
have provided some suggestion .here I have also discussed role and preventing activities can take
by various financial institution.