AML/CFT Regulations for Mobile Money: Policy Options for Bangladesh

Access to the financial system by the lower segment of society is assumed as one of the seminal steps to establish a poverty-free equitable society. Serving the poor through mobile financial services (MFS) is a much-praised agenda in the global development forum. Bangladesh is playing a flagship role in using this vehicle to expedite investment activities of the poor through quick delivery of financial resources. However, like many other countries, the country is also experiencing abuse of mobile financial services for criminal purposes.

To this end, Bangladesh Financial Intelligence Unit (BFIU) had formed a focus group with participation from regulators, government agencies and service providers. The focus group developed this study paper, which has aptly identified the existing and emerging money laundering and terrorist financing risks in the MFS of Bangladesh and suggested policy recommendations to promote an effective and sustainable supervisory regime for MFS.   

This study lays down a clear direction to service providers regarding regulatory expectations on anti-money laundering (AML)/combating financing of terrorism (CFT) risk management. The information, analysis and recommendations contained in the paper will be beneficial to policy makers, service providers, risk managers and researchers at home and abroad.