The main objective of the BFIU is to establish an effective system for prevention of money laundering, combating financing of terrorism and proliferation of weapons of mass destruction. BFIU was established in June 2002, in Bangladesh Bank (Central bank of Bangladesh) named as 'Anti Money Laundering Department'

Bangladesh Money Laundering Prevention Act: In 2002, the government passed the Money Laundering Prevention Act to combat the problem of money laundering. ... The government then implemented the UN Convention Against Corruption in 2007. (UNCAC).

The main causes of money laundering in Bangladesh:

In Bangladesh, the prime cause of money laundering is lack of political transparency and good governance which has created and encouraged corruption in all sectors of the society. The second reason is huge informal employment and unimaginably high informal transaction in the economy that left lots of undefined sources.

Anti-Money Laundering – Controls

Criminalization. Many governments, financial institutions, and businesses impose controls to prevent money laundering. ...

Know Your Customers. ...

Record Management and Software Filtering. ...

Holding Period. ...

New Technology.