Welcome

to
My Presentation
 Presentation
On
“Financial Crimes of Banks in Bangladesh”

Presented by
Rakibul Islam
ID: BBA 19018
Department of Business Administration
Mawlana Bhashani Science and Technology University
 Contents

1. Introduction
2. Objectives
3. Methodology
4. Limitations
5. Conceptual Framework of Financial Crimes
6. High profile Financial Crimes in Bangladesh
7. Findings
8. Recommendations and Conclusion
 Introduction

Financial Crime: any illegal activity that involves the

use of financial systems, institutions, or instruments for
illicit purposes, typically with the goal of generating
profits for the perpetrators.
 Objectives

The general objective of this study to have a sound

General understanding of financial crimes of banks in
Objective Bangladesh and its policy and procedure followed in the
Bank Asia Limited.

•Understand financial crimes and their impact on

economic, social, and security aspects
•Highlight key reasons behind financial crimes.
•Illustrate the current financial crime landscape in
Bangladesh.
Specific
•Introduce Bank Asia's Anti-Financial Crime policy.
Objectives •Identify limitations in Bank Asia's Anti-Financial Crime
policy.
•Provide recommendations to address identified policy
limitations.
 Methodology

Primary Data Secondary Data

1. Previous file study as provided by

the officers concerned.
1. Personal observation. 2. Brochures, Manual and publications
2. Face to face conversation with of Bank Asia.
officers. 3. Official website of Bank Asia PLC
3. Personal observation on the 4. Online data from the website of BFIU
procedure of AML&CFT and Bangladesh Bank.
activities. 5.Relevant Journals and research
papers.
1. Inadequacy of data.

2.Excessive nature of
confidentiality.

3. Inadequacy of time.
 Conceptual Framework of Financial Crimes
Generally, financial crimes are defined as such criminal activities
carried out by individuals or criminal organizations to provide
economic benefits through illegal methods.

Classification of financial crime

Corruption Kickbacks, bribery, extortion, embezzlement

Fraud Identity, mortgage, occupational

Theft Cash, intellectual, fraud

Manipulation Laundering, cybercrime, bid rigging, insider trading

Common Types of Financial Crimes

 Identity theft

 Bribery and Corruption

 Money Laundering

 Embezzlement

 Cyber Crimes

 Terrorist Financing
Money Laundering

Money laundering (ML) is a financial crime that involves disguising the

proceeds of illegal activities such as drug trafficking, bribery, or fraud as
legitimate funds.

 The goal is to make the funds appear legitimate so they can be used
without detection.
Trade based Money Laundering
The process of disguising the proceeds of crime and moving value through
the use of trade transactions in an attempt to legitimize their illicit origins.

The basic techniques of trade-based money laundering include:

 Over- and under-invoicing of goods and services;

 Over- and under-shipments of goods and services

Embezzlement

Embezzlement is the purposeful stealing, retention, or misuse of funds

and/or assets entrusted to an employee by an employer or organization.

 In embezzlement, the embezzler obtains assets legally, but the assets are
used for unintended purposes.

 Embezzlement is generally considered a white-collar crime, but there are

smaller types, such as withdrawing money from the cash register before
balancing it
Terrorist Financing

The process of providing financial support or resources to terrorist

organizations or individuals with the intent of facilitating terrorist
activities.

 This support can come in various forms, including funds, goods,

services, or other assets.
 It enables terrorists to carry out their activities by providing the
necessary means to plan, organize, and execute attacks.
 High Profile Financial Crimes in Bangladesh
Alleged Scamsters Affected Bank/NBFIs Amount (Crore) Period Legal Process
North Korea Bangladesh Bank Swindled 2016
Cyber Hackers Tk. 1110
(approx)

Sheikh Abdul Hye BASIC Bank Swindled 2009-2013 ACC filed 60 cases
Bacchu and associates Tk. 4,500 since july 2014

Hall- Mark Group Sonali Bank Swindled Tk. 2010-2012 Sonali Bank filed 16
3,500 cases and ACC filed 11
cases

Crescent Group Janata Bank Swindled 1746 Tk. 2017-2018 ACC filed 5 cases

Chisty and Associates Farmers Bank (Now Padma Swindled Tk. 2014-2016 ACC filed 15 cases
Bank) 3,500 or more

Bismillah Group Janata, Prime, Jamuna, Swindled Tk. 2006 -2012 ACC filed 12 cases
Shahjalal Islami bank and 1175
Premier Bank
 Findings

Financial crimes harm economies, erode trust, and pose security

threats.
. Loopholes in regulations, weak enforcement and training gaps
fuel financial crimes.
Bangladeshi banks struggle with money laundering, fraud, and
international compliance.
Challenges include resource constraints and evolving criminal
methods.
 Recommendations

Quantify impact of financial crimes with clear examples/data.

Identify gaps in regulations, enforcement, technology enabling

financial crimes. Propose solutions: tighter rules, staff training,
better software.
Analyze recent cases of money laundering, fraud in Bangladeshi
banks.
Review Bank Asia's policy on money laundering, terrorism
financing prevention. Focus on customer checks, transaction
monitoring.
Improve Bank Asia's ability to prevent, detect financial crimes:
 Regular staff training
 Closer cooperation with authorities
 Ongoing policy, tech updates
 During the internship, it became clear that financial crimes are major challenges for
Bangladesh's banking sector, affecting economic stability, social trust, and security.

 Weak regulatory oversight, loopholes, and tech advancements fuel illicit activities
like money laundering. While Bank Asia Ltd and other banks have anti-financial
crime policies, limitations persist due to resource constraints and evolving criminal
tactics.

 To effectively combat financial crimes, banks must prioritize staff training, regulatory
collaboration, and technological advancements. Continuous policy review and
investment in training, partnerships, and technology are essential for safeguarding the
financial system and fostering stakeholder trust.