GUIDANCE NOTES ON

PREVENTION OF MONEY LAUNDERING

AND TERRORIST FINANCING
OF

S.R. CAPITAL LTD.

 Preface

In response to the growing concern about money laundering and terrorist activities, then
international community has acted on many fronts. The United Nations (UN) was the first
international organization to undertake significant actions to fight against money laundering
through adopting several conventions and resolutions. Following UN action, the Financial
Action Task Force on Money Laundering (FATF) was formed by G-7 countries in 1989 as the first
intergovernmental body which has recommended forty recommendations to combat money
laundering in 1990.

In October 2001, the FATF expanded its mandate to deal with the funding of terrorist acts and
terrorist organization, and it took the important step of creating the Eight (later expanded to
Nine) Special Recommendations on Terrorist Financing. These 40+9 Recommendations have
been endorsed by over 180 countries and are universally recognized as international standard
for AML/CFT program. To oversee the implementation of these recommendations in Asia
Pacific Region, the Asia/Pacific Group on Money Laundering (APG), FATF-style regional body,
was founded in 1997, of which Bangladesh is a founding member. FATF has further extended its
mandate to include Proliferation Financing and accumulated all 40+9 recommendations into 40
Recommendations in February 2012.

In line with the international initiatives and standards, Bangladesh has also enacted Money
Laundering Prevention Act (MLPA), 2012 (repealing the MLPA, 2009) and Anti Terrorism Act
(ATA), 2009 (as amended in 2012). The new acts address all the deficiencies identified in the
2nd Mutual Evaluation of Bangladesh conducted by APG in 2008 to determine the extent of its
compliance, with the global standards. Both the Acts have empowered Bangladesh Bank (BB) to
perform the anchor role in combating ML&TF through issuing guidance and directives for
reporting agencies including Financial Institutions (FIs), as defined in section 2(g) of MLPA,
2012.

These Guidance Notes are designed to assist MIDAS Financing Limited in combating money
laundering and terrorist financing.

An overriding aim of the Guidance Notes is to ensure that information regarding appropriate
identification is obtained in relation to the customers of FIs and their transactions.
Furthermore, this is to assist the detection of suspicious transactions and/or activities and also
to create an effective "audit trail" in the event of any subsequent investigation.
 Contents

Chapter 01
SL Content