Posted on Jan 21, 2020

Hassan and Associates

The Money Laundering Prevention Act, 2012 also casts an obligation on banking companies, financial institutions and others to both verify and maintain a record of the identity of their clients. Measures have already been undertaken in this direction by way of adoption of the KYC norms by the concerned institutions. Under these norms, any person opening a bank account, or a demat account, subscribing to mutual funds, or taking a mobile phone connection has to establish his identity to the satisfaction of the concerned authorities. He has to furnish proof of identity with a photograph and also proof of residence. Even courier service providers ask for proof of identity before accepting or handing over a parcel. There are strict instructions from the Bangladesh Bank and other regulatory authorities to their subordinate functionaries to enforce the KYC norms strictly. The banks, financial institutions and others have to ensure that the customer is, in fact, the person who he or she claims to be. This is to prevent fraudsters using the name, address and forged signatures of others for doing fraudulent or benami transactions. Money laundering is a grave issue as it is the byproduct of illegal activities and financial frauds, and further abets continuance of such activities and frauds. It needs to be checked and dealt with severely.
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