Bangladesh Bank signs deal with 10 states to combat money laundering

Prime Minister Sheikh Hasina Wednesday said the Bangladesh Bank (BB) has signed an agreement with financial intelligence units of 10 countries to share information related to money laundering in a bid to combat such crimes.

The prime minister informed it to the Jatiyo Sangsad (JS) in a tabled question, raised by lawmaker Mohammad Imazuddin Pramanik of Naogaon.

She said her government has taken steps to bring some changes in two acts - Money Laundering Prevention Act 2009 and Anti Terrorism Act 2009 - to make anti-money laundering system more effective.

Sheikh Hasina assured the JS of scrutinising the wealth statements of government officials, if it is necessary to curb corruption in the administration. "Wealth statements of the government officials have already been collected. Their accounts have been preserved under the respective authorities."

She said another measure has been taken to curb official corruption by launching e-tendering system. Initially Local Government Engineering Department, Roads and Highways Department, Water Development Board and Rural Electrification Board have been brought under the system. All offices would be brought under the system by the end of the year.

The government has also taken initiatives to strengthen the Anti-Corruption Commission (ACC) through ensuring its transparency and accountability. All necessary administrative, financial and legal assistance have been extended to the organisation to deal with the corrupt elements as her government is committed to curb corruption.

"With this objective in mind, a bill named Anti-Corruption Commission (amendment) Act 2011 has been placed in the House," she said, claiming that the commission is performing its activities independently.

However, she said the government has no plan to set up a separate ministry to curb corruption.

Source: FE

Bangladesh: Amended AML Act Incorporates Stringent Measures

Nazmul Ahsan

The Anti-Money Laundering Act, 2011 has been made more stringent, by expanding the purview of the reporting agencies and widening the areas of suspected transactions and predicating offences.

With the change in the existing definition of "money laundering" under the act, the maximum term of imprisonment for the offence has been increased from seven years to 12 years and the minimum, from current six months to four years under the proposed new act.

The amendment to the Anti-Money Laundering Act (AMLA) was approved last Monday last at a cabinet meeting. Prime Minister Sheikh Hasina presided over the meeting.

The Act, with the proposed amendments, will be placed now at the parliament as a Bill, sources in the Ministry of Finance (MoF) said.

According to the approved act, 11 types of financial and social business entities have to report now to Bangladesh Bank (BB) regularly on their "suspected transactions."

The newly included reporting agencies which came within the ambit of mandatory reporting are-stock dealers and stock brokers, portfolio managers, security custodians, asset managers, non-profit organisations, non-government organisations, cooperatives, real estate companies, jewel and metal businessmen, trust companies, lawyers and accountants.

Presently, only banks, insurance companies, money changers and financial institutions are liable to report to the BB on any suspected transaction.

"Many financial institutions including brokerage houses and cooperatives are now the safe havens for black money and money earned through illegal means. This should be stopped," a MoF official said.

"A number of global watchdog organisations on anti-money laundering have long been putting pressure on us to bring such financial institutions under the mandatory reporting to the central bank," he added.

The new proposed act has brought under its operational jurisdiction politically exposed persons, special judges appointed under Criminal Law Amendment Act, 1958, terror financing, any wealth obtained or possessed through corruption and money siphoned off to foreign countries.

It has included six types of offences with the existing ones to be treated as predicated offences.

The new areas are-smuggling, laundering currency, robbery, human trafficking and dowry.

The existing predicated offences have also been included in the AMLA. These are: trafficking of women and children, corruption and bribery, faking currency, faking land document, extortion, forgery, illegal trade of arms, illegal trade of narcotics, abduction and murder.

Officials in the MoF said the move to upgrade the existing anti-money laundering act, 2009 has been taken to comply with the international standard.

He said, Financial Action Task Force (FATF), an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, said in its report in 2010, Bangladesh is still non-compliant in at least 10 key areas for attaining international standard.

The FATF has strongly recommended to the government to make the current AMLA stringent to attain the global standard.

Accordingly, MoF formed a 12-member National Coordination Committee (NCC), headed by Finance Minister AMA Muhith, to update the existing anti-money laundering act.

"The US Justice Department has extended its technical cooperation for updating the act, which is now one of the global standard anti-money laundering acts," a top MoF official told the FE.

Source: FE

Bangladesh Bank gets more powers to curb money laundering

by Rejaul Karim Byron

The proposed anti-money laundering law empowers Bangladesh Bank to cancel licences of organisations that provide false information or conceal facts from the central bank about siphoning of funds.

The cabinet yesterday approved the Money Laundering Prevention Act. Besides banks and other financial institutions, nongovernmental organisations, stock dealers, brokerage houses, asset managers and other organisations must regularly send information about suspected transactions to the central bank, according to the draft of the law.

Under the law, a separate financial intelligence unit will be set up at Bangladesh Bank to monitor and take necessary action against money laundering activities.

If any organisation fails to provide information sought by the central bank, it can fine the agency as high as Tk 5 lakh at a rate of Tk 10,000 a day, according to the law. If any organisation is fined more than thrice in a fiscal year, the central bank can suspend registration or licence of the organisation, any of its branches, service centres, booths and agents, according to the law.

As further punitive measures, the central bank can take action against the licensing authority of the organisation, the law says. Similar punitive action will be taken against any organisation if it fails to comply with any circular issued by the central bank.

If any organisation finds information about any suspicious transaction it can suspend transaction of the account for 30 days, and the timeframe can be extended to six months, if necessary, according to the law.

Source: The Daily Star

Bangladesh: Nat'l committee formed to finalise AML Action Plan

The Ministry of Finance (MoF) formed Sunday a 12-member National Coordination Committee (NCC) to finalise an action plan to prevent the money laundering and terrorist financing in accordance with the recommendations made by international anti-money laundering institutions.

Finance Minister AMA Muhith has been made convener of the NCC. Other members of the committee include the Bangladesh Bank governor, the attorney general, and the secretaries of finance division, banking division and ministries of home, foreign and law, official sources said.

The first meeting of the newly formed NCC will be held shortly to identify the loopholes in the existing laws to prevent money laundering and terrorist financing, a top MoF official said.

The NCC will complete their job within the next two to three months, he said.

The move has been taken in the backdrop of a report, submitted recently by Financial Action Task Force (FATF). The FATF in its report said Bangladesh has not yet attained the international standard in containing money laundering and terrorist financing activities.

The FATF, an inter-governmental body formed to develop and promote national and international policies to combat money laundering and terrorist financing, in its report said Bangladesh is still non-compliant in at least 10 key areas in attaining international standard, an official said.

Besides the FATF, Asia Pacific Group (APG) on Money Laundering, in their recently concluded Mutual Evaluation Report also expressed dissatisfaction over the poor level of legislation to curb money laundering crimes in the Bangladesh, he said further.

The international watchdog groups, including FATF, have asked the government to attain the international standard in combating financial crimes by October this year or at least submit the government's action plan to them before its plenary secession due in October this year, an official in the BB said.

Source: The Financial Express

Bangladesh cabinet nod for death penalty for financing terrorism

The Bangladesh cabinet on Monday approved a proposed amendment to current anti-terrorism legislation, which, if passed by parliament, will make the financing of terrorism punishable by death. 

Under the existing law, financing terrorism carries a maximum sentence of 20 years in prison. 

'The government has decided to amend the previous legislation to strengthen the country's legal framework to stop terrorism,' Abul Kalam Azad, the prime minister's spokesman, told a press conference after the cabinet meeting. 

Parliament will discuss the proposed amendment in January, which will give greater power to Bangladesh Bank, the banking regulator, to freeze any accounts over suspicious transactions. 

Under the current Anti-Terrorism Act of 2009, killing, possessing illegal arms and ammunition, abduction, creating panic and using Bangladesh to carry out terrorist activities in or outside the country, are punishable by death. 

The government believes sources of terrorism funding need to stop through stringent provisions in the law, a Home Ministry official said. 

Source: M & G

Khaleda Zia''s younger son goes on trial for money laundering

Arafat Rahman Koko, the younger son of former Bangladesh prime minister Khaleda Zia, went on trial today in a graft case for allegedly laundering Tk 23 crore.

The trial of Koko, who is in Bangkok for medical treatment since July 2008, and Ismail Hossain Saimon, son of former shipping minister Akbar Hossain, began today for alleged money laundering Taka 23 crore, the Star online reported.

Koko and Saimon were indicted for money laundering on November 30 last year.

Justice Mohammad Mozammel Hossain of Special Judge''s Court-3 recorded the statement of complainant Abu Sayeed, deputy director of Anti-Corruption Commission (ACC), the report said.

Hossain had framed the charges against the duo in their absence and said the trial would continue in their absence.

The anti-graft body has accused them of siphoning off money from China Harbour Engineering Company Ltd and Siemens for helping them win government contracts.

China Harbour got a Taka 351 crore contract to set up New Mooring Container Terminal and Siemens a Taka 239 crore contract to supply and install equipment for Teletalk, the state-owned mobile phone operator.

Koko, who was arrested in September 2007, on graft charges and paroled for treatment abroad in July the following year, is now in Bangkok.

Saimon has been on the run since the Anti-corruption Commission filed the money-laundering case against him and Koko on March 17, 2009.

A Bangladeshi court yesterday rejected a petition of Tarique Rahman, Koko''s elder brother, seeking relief in a money-laundering case.

Bangladesh''s Anti-corruption Commission (ACC) on Octobe 26, 2009, filed the case with a Dhaka court against Tarique and his business partner Giasuddin Al Mamun on charges of siphoning of Taka 204.1 million to Singapore between 2003 and 2007.

Bangladesh''s Appellate Division upheld the High Court verdict rejecting a petition challenging the money-laundering case against Tarique, the bdnews24 online reported.

Tarique, the senior vice-chairman of BNP, has 14 cases filed against him on various charges. He has been undergoing treatment in the UK. PTI

Source: MSN News

Terror-financing should receive a sharper focus

THE government's formation of a 10-member high-powered committee styled as National Committee on Anti-money Laundering -- Combating Terrorist Financing reflects its desire to provide an organised basis to the fight against illegal international monetary transactions and financing of terrorist networks. So far as we understand, the national committee will principally act as a policy-making body while a working committee consisting of representatives from the similar ministries and bodies as are represented on the NC will assist the latter on the implementation side. Additionally, the new body is to help recover money stashed away abroad. There are thus three functions before the committees: one, combating money laundering; two, fighting terror financing; and three, bringing back unearned incomes of Bangladeshi citizens kept in foreign financial institutions.

The new arrangements envisage a committee within a committee -- rather a wheel within a wheel. That way there is a built-in element of coordination between the two committees. So far so good, but what we believe to be necessary is to have a nodal agency or a taskforce looking into terror financing as an integral part of the counter terrorism strategy. The committee set-up being torn between three agendas there is likely to be a diffusion of focus on terrorist funding. That's why we are asking for a separate agency to look into the phenomenon of financing terrorism.

Let's not forget that while changes in the anti-money laundering act have been followed by remittances soaring through the formal banking channels those by themselves may not prove enough to checkmate clandestine use of money by extremist quarters. We have heard allegations of outlawed extremist groups operating under different labels and some NGOs and banks linked to suspicious banking operations with Bangladesh Bank looking into them. They are yet to be extricated from the oxygen of support they receive from recalcitrant quarters as is evidenced by the discovery of grenades and arms caches.

The anti-money laundering thrust is understandable though, as the money transacted through informal channels like hundi that is not recorded through the banking system is susceptible to use for subversive activities including trafficking in weapons and terrorist activities. While the national committee addresses the question of collaborating with foreign governments and international financial institutions and banks to secure their cooperation in fighting money laundering and flight of capital, a special cell is needed to tackle terror financing in a focused and intensive way.

http://www.thedailystar.net/story.php?nid=25361

E-transactions open window for money laundering

Staff Reporter

Internet banking, international credit card and mobile phone recharge cards emerged as new windows of money laundering with the expansion of technology-based transactions in the country.

A meeting of the Anti-Money Laundering Task Force at Bangladesh Bank yesterday advised the commercial banks to remain alert to prevent money laundering through the new windows, meeting sources said.

Bangladesh Bank executive director Abul Quashem chaired the task force meeting which was attended by representatives from the Task Force member-bodies including ministries of Finance, Home and Commerce, National Board of Revenue (NBR), commercial banks, intelligence agencies and police were present.

As for money laundering through international credit cards, holders are supposed to deposit the same amount of foreign currencies to their local bank accounts against what they had spent abroad.

But some of them were depositing the amount through purchasing the foreign currencies from the kerb market, according to allegations raised at the meeting.

Meeting sources said the meeting also decided to introduce a uniform (know-your-customer) KYC form to make account opening and operating easy for the bank clients.

Commercial banks alleged at the meeting that their clients were facing difficulties to comply with the KYC due to different types of forms being used by different banks. The central bank will send a draft of uniform KYC form to the commercial banks for their opinion in this regard.

http://nation.ittefaq.com/issues/2007/10/29/news0605.htm

Korea: ACC sits on $7.5m money laundering evidence

A Korean citizen claims that an Anti-Corruption Commission (ACC) official has stopped proceedings of filing a case regarding laundering of about $7.5 million although National Coordination Committee (NCC) to combat serious crime and corruption has evidence.

Ok-Kyung Oh in a press conference at Jatiya Press Club yesterday said a taskforce team this year found evidence of laundering the amount to South Korea by her former husband Bo- Sun Park, chairman of TaeHung Packaging (BD) Ltd, and forwarded the matter to ACC for further action.

She alleged ACC did not make any probe into the matter for mysterious reasons except changing the enquiry officer three times.

Ok-Kyung Oh, who claims to have been removed from the post of managing director of the same company illegally in 2004, alleges that ACC Commissioner Abul Hasan Manzur Mannan is holding back the file regarding filing of the case.

"If an ACC commissioner is holding back a file like this, then who's going to fight against corruption?" Ok-Kyung Oh asks.

"If ACC cannot file this case even after having such documents, the commission cannot file any case regarding corruption," she adds.

Contacted, Mannan told The Daily Star, "The allegation is not true. May be she has misunderstood me. She might have said that Customs Bond Commissionerate did not scrutinise her allegations earlier."

On delay in ACC action regarding the matter, he said, "The officer entrusted with enquiry earlier collected all the information but did not take those into cognisance, especially those technically important for this case."

"I don't know why the officer did that," he said, adding, "As we have understood all aspects of the matter by now, it would be disposed of soon."

Mentioning the recent taskforce report regarding the matter, Ok-Kyung Oh told journalists $7.5 million amounts to Tk 52.35 crore was laundered from 2000 till 2007 through over invoice.

She also complains that two former committees formed by the Bangladesh Bank and Customs Bond Commissionerate could not conduct impartial investigation and were influenced by former communications minister Nazmul Huda and his wife Sigma Huda during tenure of the four-party alliance government.

Source: The Daily Star

Bangladesh: Proper application of law to resist money laundering underscored

Speakers at an anti-money-laundering workshop opined that the incidents of money laundering were taking place because of use and flow of illegal money.

Urging all officials concerned including bankers to become more active in imposition anti money laundering law, they said it is possible to resist corruption of the law concerned is applied appositely and efficiently.

Deputy Commissioner of the district Mohammad Nurul Amin as chief guest delivered his speech at the function on "Anti Money Launderign Affairs Workshop' held on Saturday (Jan 19) at the auditorium of Rangamati Hill District Council, AKM Harunur Rashid, Senior Vice President of Islami Bank Bangladesh Limited presided over the daylong workshop.

Deputy Director Mohammed Ibrahim Bhuiyan, Assistant Director Asim Kumar Chwodhury of Bangladesh Bank, Mohammed Rafiqul Islam, Senior Vice President of Islami Bank Training and Research Academy, Mohammed Saleh Uddin, Deputy Post Master General as special guest spoke at the function organised by Rangamati Branch, Islami Bank Bangladesh Limited.

The anti-money laundering law is being imposed effectively since January 11, 2007 though the act concerned was enacted in 2002, the speakers said.

The money laundering has a covered destructive impact on economy, safety and social situation of the country and it attracts criminals including black marketers, drug dealers, terrorists and illegal arms traders to commit crimes in the society, they added.

Besides, Mohammed Arifur Rahman, Manager, Mohammed Refayet Hossain, Senior officer and Mohammed Akter Uj Jaman, investment officer of the Islami Bank Rangamati branch addressed here.

A total of 46 officers from 36 branches of 8 different banks working at 10 Upazilas of the district took part at the workshop, a press release signed by Md, Arifur Rahman, Manager, Rangamati branch said.

http://nation.ittefaq.com/issues/2008/01/24/news0924.htm

Bangladesh Central Bank Developing KYC Form To Combat Illegal Transfers

October 21, 2007 12:44 p.m. EST

Siddique Islam - AHN South Asia Correspondent
Dhaka, Bangladesh (AHN) - The Bangladesh Bank (BB), the country's central bank, will introduce an identical "Know Your Customer (KYC)" form for commercial banks to help combat illegal fund transfers.

"We are now working to introduce such form to collect similar information from all banks that will also help strengthen our monitoring system," a senior bank official told AHN in Dhaka.

Currently, banks are using different types of forms for preparing KYC profiles on the basis of information, provided by the account holders, to assess financial risk. However, a six-member committee, headed by Deputy General Manager of the Anti-Money Laundering Department of the BB Swapan Kumar Biswas, is working on a unified, standardized form.

The central bank earlier instructed the banks to maintain 'the transaction profile method' properly for opening of any accounts under KYC system to check suspicious transactions. Under the existing Anti-Money Laundering Act, banks are required to inform the Anti-Money Laundering Department of the central bank if it detects any suspicious transactions.

http://www.allheadlinenews.com/articles/7008898685

BB rolls out directives for banks to counter money laundering

Rejaul Karim Byron

The central bank yesterday asked commercial banks and financial institutions to build a system to prevent and identify terror financing and transactions.

Bangladesh Bank also spelled out a series of directives for insurance companies and moneychangers separately in line with the two new ordinances designed to counter money-laundering and terror financing.

The central bank sent out the directives in letters to the chief executives of the organisations.

Commercial banks and financial institutions will no longer be able to open anonymous and fictitious accounts. They will have to gather and maintain adequate information about sources of money and authentic beneficiary, according to the BB.

The banks and financial institutions will have to identify the possible risks in providing technology-based services to distant clients living in foreign countries.

All the directives will also be applicable to foreign branches or subsidiaries of the organisations.

If any suspicious transaction is spotted, it will have to be reported to the central bank.

Bangladesh Bank further asked all organisations to find ways of identifying the transactions carried out for terrorist activities through the banking channel.

The central bank for the first time rolled out the directives on anti-money laundering and terror financing prevention to insurers and moneychangers.

The moneychangers will have to gather and maintain adequate information about their clients for at least five years. They will have to report to the central bank if they find any suspicious financial transaction.

The insurers will also have to follow the same directives made by the central bank.

In addition, the insurance companies will have to preserve details about policyholders, policy closure, maturity and withdrawal for at least five years.

The caretaker government has recently passed a new anti-money laundering act, scrapping the previous law as part of a global fight against militant financing. Also, the government enacted a new law to prevent terror financing.

The central bank said the commercial banks, financial institutions, insurance companies and moneychangers will have to play a responsible role in implementing the directives.

The central bank also asked the organisations to train their employees on the two laws.

Source: The Daily Star

Bangladesh: SIBL holds workshop on Anti-money laundering

A workshop on 'Anti-Money Laundering' organised by training institute of Social Investment Bank Ltd (SIBL) was held on Jan 14, 2008 at bank's Head Office in Dhaka. Thirty-five officers from different branches and Head Office attended the workshop.

SIBL Chairman Abdul Awal Patwary inaugurated the workshop as the chief guest while Managing Director K M Ashaduzzaman and Deputy Managing Director Abu Sadek Md Sohel were present as special guests in the opening ceremony of the workshop.

The chairman called upon the participants to work hard with honesty and loyalty for improvement of the institution. Managing Director K M Ashaduzzaman emphasized that training has no alternative to build career in banking profession. Deputy Managing Director Md. Abu Sadek Md Sohel asked SIBL officers to equip themselves with proper knowledge to guard against money laundering. Md. Akhtar Hussain, Principal of SIBL Training Institute and other senior executives and officers were present in the inaugural ceremony.

http://nation.ittefaq.com/issues/2008/01/16/news0346.htm

Bangladesh, Malaysia to sign money laundering pact

Bangladesh is to seal a pact with Malaysia on sharing information over money laundering, a newspaper report here said.

The Bangladesh Bank and Bank Negara Malaysia, the central banks of the two countries, will sign the agreement Monday, the the New Age newspaper reported.

Bangladesh also wants similar agreements with several countries including India.

The central bank is also trying to join the Egmont Group, an organisation of financial intelligence units, to share information on and combat money laundering and terror financing.

The government believes Malaysia to be one of the major destinations of the money smuggled out of the country.

According to the World Bank, the cross-border flow of proceeds from criminal activities, corruption and tax evasion is estimated at between $1 trillion and $1.6 trillion per year - half of this originating from developing and transitional economies.

Source: Kuala Lumpur News.Net

Bangladesh enacts tough anti-terrorism law

Indo-Asian News Service
Dhaka, June 13, 2008

A vast array of crimes, including money laundering, arms running and financing terror attacks, have been made non-bailable offences -liable to death penalty and life imprisonment - under a new anti-terrorism law in Bangladesh.

Promulgated by Bangladesh President Iajuddin Ahmed, the Anti-Terrorism Ordinance 2008 became effective on Wednesday through a gazette notification, The Daily Star reported on Friday.

The ordinance empowers Bangladesh Bank to freeze the accounts of a suspected terror fiancier and give directions to banks concerned to take preventive measures against monetary transactions for financing terrorist acts.

The provision of death penalty has been provided for terror financing and staging murder to create panic and jeopardise the country's sovereignty. Special tribunals will be constituted to deal with such offences, the United News of Bangladesh (UNB) news agency reported.

Anyone resorting to murder, kidnapping or damaging property to create panic among the people and jeopardise the country's security by using explosives, arms and chemicals, will be charged with committing terrorist offence.

The time-frame for resolving a terrorism case has been fixed at six months after the framing of charges. The ordinance provides the maximum punishment of seven years of imprisonment with fines for a member or supporter of an outlawed organisation.

In the past few years, Bangladesh has proscribed Jamaat ul Mujahideen Bangladesh (JMB), Harkat ul Jehad Islami (HUJI), and other Islamist militant bodies.

A report by the non-government Bangladesh Enterprises International (BEI), released Wednesday, said these organisations have been consolidating their network and regrouping their cadres.

While the number of terror attacks and violence has come down, thanks partly to the campaign by the army, police and the elite Rapid Action Battalion (RAB), this has not prevented underground activity, training and distribution of propaganda material in the villages.

The proscribed militant bodies were waiting for an opportune time to carry out attacks, the BEI report has said.

Source: HindustanTimes

Kuwaiti Charity Designated for Bankrolling al Qaida Network

June 13, 2008
HP-1023

Washington - The U.S. Department of the Treasury today designated the Kuwait-based Revival of Islamic Heritage Society (RIHS) for providing financial and material support to al Qaida and al Qaida affiliates, including Lashkar e-Tayyiba, Jemaah Islamiyah, and Al-Itihaad al-Islamiya. RIHS has also provided financial support for acts of terrorism.

"Designating and freezing the assets of an organization engaged in charitable work is a decision not taken lightly because the last thing we want to do is cut off needed humanitarian assistance," said Stuart Levey, Under Secretary for Terrorism and Financial Intelligence. "However, the reality is that RIHS has used charity and humanitarian assistance as cover to fund terrorist activity and harm innocent civilians, often in poor and impoverished regions. We have a responsibility to do all we can to shut down the funding channels of terrorism."

RIHS was designated today under Executive Order 13224, which targets terrorists and those providing financial, technological, or material support to terrorists or acts of terrorism. Any assets RIHS holds under U.S. jurisdiction are frozen and U.S. persons are prohibited from engaging in any transactions with RIHS.

The RIHS offices in Afghanistan (RIHS-Afghanistan) and Pakistan (RIHS-Pakistan) were designated by the U.S. Government and the United Nations 1267 Committee in January 2002 based on evidence of their support for al Qaida. At that time, there was no evidence that the Kuwait-based RIHS headquarters (RIHS-HQ) knew that RIHS-Afghanistan and RIHS-Pakistan were financing al Qaida.

Since that time, however, evidence has mounted implicating RIHS-HQ in terrorism support activity. The U.S. Government has learned that RIHS senior leadership, who have actively managed all aspects of the organization's day-to-day operations, have been aware of both legitimate and illegitimate uses of RIHS funds.

"We designated two branches of RIHS in 2002, and since then a number of other countries have taken action against RIHS. We look forward to continuing our work with Kuwaiti authorities to ensure that legitimate charitable giving can reach those in need and not be diverted to terrorist organizations," Levey continued.

Suspected of providing support to terrorism, RIHS offices have been closed or raided by the governments of Albania, Azerbaijan, Bangladesh, Bosnia-Herzegovina, Cambodia, and Russia.

In countries where RIHS activities are banned or scrutinized by local governments, RIHS-HQ has developed multiple methods to continue its operations. After the Government of Bangladesh closed RIHS offices, RIHS-HQ funneled money into Bangladesh through another organization to continue RIHS activities and to help shield it from scrutiny there. RIHS-HQ has used RIHS officials and other individuals to courier funds out of the country in order to evade the scrutiny of the international financial system. In some countries, including Albania and Kosovo in particular, RIHS senior officials have assisted RIHS branch offices with name changes, and then continued to provide financial support to the new organizations.

RIHS Support for Terrorism in South Asia

RIHS-HQ provides significant financial and logistical support to the U.N.-designated terrorist group Lashkar e-Tayyiba (LeT), a Pakistan-based terrorist group with links to the al Qaida network. LeT was reportedly implicated in the July 2006 attack on multiple Mumbai commuter trains, and in the December 2001 attack against the Indian Parliament. As of 2007, RIHS provided office space to an LeT leader who visited Kuwait to raise funds for LeT operations. RIHS officials accompanied the LeT leader while he raised funds throughout Kuwait. As of late 2007, RIHS sent money to LeT elements on a monthly basis, and regularly transferred funds to LeT representatives' bank accounts in Pakistan. In some cases, LeT has received the funds at charitable entities associated with RIHS.

RIHS also reportedly provided a key source of funding for terrorist attacks carried out by an extremist group in Bangladesh in 2005. Despite a February 2005 Bangladeshi government ban of the terrorist group Jamaaat Mujahidin Bangladesh (JMB), on August 17, 2005, JMB launched a series of near-simultaneous bomb attacks across Bangladesh, killing two and injuring 64 persons. Over 400 bombs exploded during the course of these attacks, which were carried out in 63 of Bangladesh's 64 provinces. Following the bombings, RIHS was identified as one of the key sources of funding needed for staging these attacks. After the August 2005 bombings, RIHS was accused of funding JMB's military activities with overt and covert funds. These funds were channeled through a senior leader of a Bangladeshi Islamic organization. As of early 2005, RIHS in Bangladesh had contributed millions of dollars to this organization.

RIHS Support for Terrorism in Southeast Asia and the Horn of Africa

RIHS has provided financial and logistical support to the Southeast Asia based terrorist group Jemaah Islamiyah (JI). Specifically, an RIHS employee provided logistical support to JI's fugitive leader Nurjaman Riduan Isamuddin (a.k.a. "Hambali") prior to his capture in 2003. Due to the high security conditions during the 2002 Asian Summit, the RIHS employee escorted Hambali from Phnom Penh, Cambodia, to an alternate location, where he then provided him with accommodations. The employee was later captured and sentenced to life imprisonment on terrorism charges. An RIHS representative in Indonesia provided funding to a JI member collecting money for JI activities. The JI member funneled the funds he received from RIHS and other sources to JI associates for the procurement of weapons to support their operations.

RIHS has also funded al Qaida and like-minded terrorist groups in Somalia. Al Qaida supporters in Somalia reportedly have historically received significant funds through RIHS. In addition, RIHS provided hundreds of thousands of dollars to a university controlled by Al-Itihaad al-Islamiya.

IDENTIFIER INFORMATION

Revival of Islamic Heritage Society

RIHS Headquarters-Kuwait
Revival of Islamic Heritage Foundation
RIHF
Society for the Revival of Islamic Heritage
Islamic Heritage Revival Party
Islamic Heritage Restoration Society
IHRS
Kuwaiti Heritage
Ihya Turas Al-Islami
Ijha Turath Al-Islami
Jamia Ihya Ul Turath
Jamiat Ihia Al-Turath Al-Islamiya
Jam'iyat Ihya' Al-Turath Al-Islami
Jami'at Ihy'a Al-Tirath Al-Islamia
Jamiatul Ihya Ul Turath
Jamiyat Ikhya At-Turaz Al-Islami, Society of the Rebirth of the Islamic People
Jamiatul-Yahya Ut Turaz
Jomiatul Ehya-Ut Turaj
Jomiyatu-Ehya-Ut Turas Al Islami
Jama'ah Ihya Al-Turaz Al-Islami
Jami'ah Al-Hiya Al-Turath Al Islamiyah
Lajnat Ihya Al-Turath Al-Islami
Lajnat Al-Ihya Al-Turath Al-Islami
RIHS Administration for the Building of Mosques and Islamic Projects
RIHS Mosques Committee
Administration of the Revival of Islamic Heritage Society Committee
RIHS Arab World Committee
RIHS Committee for the Arab World
RIHS Committee for West Asia
RIHS Central Asia Committee
Committee for Europe and the Americas
RIHS Europe and the Americas Committee
RIHS Two Americas and European Muslim Committee
RIHS Europe America Muslims Committee
RIHS Southeast Asia Committee
RIHS Committee for South East Asia
RIHS Indian Continent Committee
RIHS Indian Subcontinent Committee
RIHS Committee for India
RIHS African Continent Committee
RIHS Committee for Africa
Revival of Islamic Society Heritage on the African Continent
RIHS Public Relations Committee
RIHS Cultural Committee
RIHS Principle Committee for the Center for Preservation of the Holy Qu'aran
RIHS General Committee for Donations
RIHS Youth Center Committee
RIHS Scientific Committee-Branch of Sabah Al-Nasir
RIHS Fatwas Committee
RIHS Center for Manuscripts Committee
RIHS Educating Committees, Al-Jahra'
RIHS Audio Recordings Committee
RIHS Project of Assigning Preachers Committee
RIHS Office of Printing and Publishing
RIHS Committee for Women
RIHS Committee for Women, Administration for the Building of Mosques
RIHS Women's Branch for the Project of Endowment
RIHS Administration for the Committees of Almsgiving
RIHS Committee for Almsgiving and Charities
RIHS Committee for the Call and Guidance
RIHS-Cambodia
RIHS Cambodia-Kuwait Orphanage Center
The Kuwaiti-Cambodian Orphanage Center
The Kuwait-Cambodia Islamic Cultural Training Center
RIHS Chaom Chau Center
Nara Welfare and Education Association
RIHS-Bosnia and Herzegovina
Kuwaiti Joint Relief Committee, Bosnia and Herzegovina
KJRC-Bosnia and Herzegovina
Plandiste School, Bosnia and Herzegovina
Organizacija Preporoda Islamske Tradicije Kuvajt
Kuwait General Committee for Aid
General Kuwait Committee
RIHS-Albania
Center of Call for Wisdom
CCFW
Thirrja Per Utesi
NGO Turath
RIHS-Kosovo
Dora E Miresise
Hand of Mercy
RIHS-Azerbaijan
RIHS-Russia
RIHS-Lebanon
RIHS-Bangladesh
RIHS-Somalia
RIHS-Ghana
RIHS-Tanzania
RIHS-Benin
RIHS-Cameroon
RIHS-Senegal
RIHS-Nigeria
RIHS-Liberia
RIHS-Ivory Coast

Addresses: Part 5, Qurtaba, P.O. Box 5585, Safat, Kuwait
House #40, Lake Drive Road, Sector #7, Uttara, Dhaka, Bangladesh
Number 28 Mula Mustafe Baseskije Street, Sarajevo, Bosnia and Herzegovina
Number 2 Plandiste Street, Sarajevo, Bosnia and Herzegovina
M.M. Baseskije Street, No.28p, Sarajevo, Bosnia and Herzegovina
Number 6 Donji Hotonj Street, Sarajevo, Bosnia and Herzegovina
RIHS Office, Ilidza, Bosnia and Herzegovina
RIHS Alija House, Ilidza, Bosnia and Herzegovina
RIHS Office, Tirana, Albania
RIHS Office, Pristina, Kosovo
Tripoli, Lebanon
City of Sidon, Lebanon
Dangkor District, Phnom Penh, Cambodia
Kismayo, Somalia
Kaneshi Quarter of Accra, Ghana
Al-Andalus, Kuwait
Al-Jahra', Kuwait
Al-Qurayn, Kuwait
Sabah Al-Nasir, Kuwait
Qurtubah, Kuwait
Hadiyah, Kuwait
Al-Qadisiyah, Kuwait
Al-Fayha', Kuwait
Al-Riqah, Kuwait
Al-Firdaws, Kuwait
Khitan, Kuwait
Al-Sabahiyah, Kuwait
Jalib Al-Shiyukh, Kuwait
Bayan Wa Mashrif, Kuwait
Sabah Al-Salim, Kuwait
Al-Rumaythiyah, Kuwait
Al-Salimiyah, Kuwait
Al-Aridiyah, Kuwait
Al-Khalidiya, Kuwait
Al-Dhahr, Kuwait
Al-Rawdah, Kuwait
Al-Shamiyah Wa Al-Shuwaykh, Kuwait
Al-Amiriyah, Kuwait
Al-Nuzhah, Kuwait
Kifan, Kuwait
Website: www.alturath.org

Source: US Department of Treasury Press Room

Terror funds from across border

International Islamic terror is funded by a huge financial system. It has penetrated deep into the Indian system as well. The parallel economy has a lot to contribute to it.

There is nexus between smuggling, drug rackets, arms peddlers and hawala. Some part is played by black money also. The Financial Action Task Force (FATF), an inter-Governmental organization, to study terror finance has found that the terror masters use all financial and banking routes to support their activities. In other words, they use the international or national banking and financial systems. The FATF has been trying to cut the terror funding. So far, India is not a member of this organization.

Significantly, the terror financial mechanism extends to almost all activities. The terror outfits also raise funds from the public. Even black money is supposed to have a role in its sustenance. Besides, the role of charity and human rights organizations need to be under the scanner. It has been found that terrorists spend more on preparations so that the cost of the actual operations could be reduced, according to the FATF 2008 report.

The terror outfits have been investing in the Mumbai stock exchange and are stated to be active players in real estate. Their linkage with various building and construction companies needs to be probed. Does the real estate boom have a terror link?

International money laundering too has close links with terror and crime. It is estimated that 50 per cent of the US $950 billion money laundered is done by terror-related organizations. According to the UN Monitoring Committee estimates, smuggling funds 29 per cent, drugs 26 per cent, organized crime 24 per cent and financial frauds 21 per cent.

Importantly, the economics of terror extends to many activities in India . Sadly, however the Indian investigative agencies have done little either to study or penetrate these outfits. After 9/11 the US broke the funding links. The UK also has done it. But this is nowhere on the radar of our anti-terror mechanism.

Especially against the background that the Indian agencies are aware of the different modules that fund terror. The Mumbai police investigations found that the founder of the Indian Mujahideen Riyaz Bhatkal, had set-up a recruiting agency for the Gulf countries. He had recruited over 500 youth. This had earned him a huge sum both from the recruits and their employers. The agencies have not investigated whether the employers have links with terror outfits.

Not only that. The Madhya Pradesh Police found that SIMI's chief coordinator Safdar Nagori had held a youth camp at Indore in 2007. He had set a target of raising Rs one crore through donations and charity by mobilizing the youth.

In addition, major funding comes through fake currencies purportedly printed in neighbouring countries and circulated through them. In April last, one Naushad Alam Khan was held in Dhaka with Rs 50 lakh fake Indian currency notes. Khan, it was found, was a close aide of the Harket-ul-Jihadi's (HUJI) Bangladesh Chief Abdul Hanan. Many such fake currencies have been found in Nepal as well.

An ex-Punjab terrorist Kashmir Singh too was arrested in April with 50 kg heroin worth several crores in the international market. He is believed to be working for terror organizations. In the recent Mumbai attack, the terrorists used credit cards apart from other sources of funding.

The Taliban and Al Qaeda have always been raising funds through drug and arms peddling. It is said that it controls the drug triangle and the Myanmar-India-Afghanistan-Europe route.

Their operations reportedly have close links with different insurgent groups in Jammu & Kashmir, Manipur, ULFA and other insurgent groups in Assam and Tripura. They operate with close cooperation from their shadow organizations in Nepal and Bangladesh .

Additionally, the Naxalites get arms from myriad sources including China , Pakistan and Afghanistan . Not much study has been done of the finances of the Naxalites. Mere extortions and the poor-exploited people do not fund the billions of rupees spent by the Naxalites in their operations.

The US Commission for Studying the Funding Pattern of Terrorists has come out with a 155-page report. According to the US Federal Bureau of Investigation terrorists in the US have used almost all the available financial services at one time or the other. The US could confiscate properties worth US $850,000 having links to the Al Qaeda and related terror organizations.

The Commission revealed another pattern: terror outfits are acquiring properties and possibly are even active players in the real estate business. The US Administration is looking into the sub-prime crisis from this angle as well. It is also trying to find out how the penetration of these organizations had affected its economy.

Various estimates suggest that terror outfits spent about US $750,000 on eight operations. The US security agencies estimated, as per a Washington Times report on Nov 18 2001, that the 9/11 World Trade Centre attacks cost the terror outfits US $500,000. The UK home office said that the 7/7/2005 London transport system attacks cost the terrorists British pound 8,000. In 2004, the UN Monitoring Team estimated that the Madrid train blast cost US $10,000; the Istanbul truck blasts US $40,000; Jakarta Marriott Hotel blast US $30,000; Bali explosions US $50,000; and the attacks on the US embassies in Kenya and Tanzania US $50,000.

Clearly, India needs to do a study on the terror financial resources and swoop down on it. It needs a detailed and specific study to pinpoint the lacunae in the legal and financial system so that such funding could be throttled.

Shivaji Sarkar, -INFA

Source: Central Cronicle

Bangladesh approves act to cut money laundering

DHAKA: Bangladesh's army-backed interim government approved on Thursday an act to prevent money laundering and terror financing, officials said. Government officials say effective implementation of the anti-money laundering laws would drastically cut sources of terror funding. Bangladesh's tax authority on Thursday said they had started a major drive to boost revenue, aiming to add 365,000 new taxpayers in the current fiscal year started July 1.

The drive is aimed at boosting domestic resources and reduce dependence on foreign aid for development of economy and infrastructure, a senior official with the National Board of Revenue (NBR) said.

"We have fixed a target of 365,000 new taxpayers in the current fiscal year," said Alamgir Hossain, additional commissioner of taxes, at the National Board of Revenue (NBR). The drive began on Thursday in an effort to achieve the tax revenue target of 438.5 billion taka for the fiscal year. "Some 100 inspectors have been asked to identify at least 10 new taxpayers per day," Alamgir said, adding "no harassment to the honourable taxpayers will be tolerated." The country's tax authority has vowed tough action against evaders.

http://www.thenews.com.pk/daily_detail.asp?id=63283

Bangladesh's counter-terrorism credentials

A recent Op-Ed article unfairly characterized the country's government and efforts to combat radicalism within its borders.

By Sheikh Mohammed Belal
August 5, 2008

Selig S. Harrison's July 2 Op-Ed article "Get a grip on Dhaka" asserted that Bangladesh is sheltering a growing hotbed of Islamist radicals.

Unfortunately, Harrison chose to recycle the same old accusations that he wrote about two years back. Therefore, his article failed to take into account the changes that the caretaker government has effected in our administration and judicial systems, which will help restore sustainable democratic norms and practices. It is insulting to our 150 million people, who have stood up to and prevailed against the challenge of radicalization in present-day Bangladesh.


The absence of any incident of extremism since November 2005 is testimony enough against the notion of increasing radicalization. The caretaker government has also launched extensive campaigns warning against the radicals' misleading propaganda. The government took on the terrorists after the Aug. 17, 2005, bombings and hasn't let up since -- even after a series of commendations from world leaders, including President Bush.

The extensive investigation by Bangladeshi law enforcement agencies dismissed the alleged connection between Bangladeshi extremist outfits and Al Qaeda or other international terror networks. In fact, the top Islamist leaders, who perpetrated countrywide acts of terrorism in 2005, had been executed under the existing law. All Islamist parties that allegedly propagate militancy, terrorism and intolerance have been banned by the government. Any person found to act behind banned outfits will face a harsh sentence, from 25 years of rigorous imprisonment to life imprisonment. Bangladesh has also taken steps to guard against terrorist-financing organizations by strengthening financial intelligence units operating in the Bangladesh Bank and by amending the Anti-Money-Laundering Act of 2002.

Bangladesh is perhaps the only country in the world that arrested, prosecuted (under the open judicial process) and eventually executed all six masterminds of a terrorist network. Bangladesh's principled position of condemning terrorism in all its forms and manifestations, be they in the name of religion or any other ideological pursuit, has been appreciated across the globe.


Since 9/11, the U.S. media have broadly highlighted and rightly appreciated the government's initiative to fight corruption. "In Bangladesh, 'a Quiet Revolution': War on Rampant Graft Brings Pain, Promises," read a news analysis in the Washington Post on Oct. 3, 2007. Time magazine published a cover story on Bangladesh in April 2006, concluding that "a nation long plagued by natural disasters, poverty, corruption and violence may finally be on the verge of a happier future."

Therefore, the allegation that Al Qaeda cohorts and the group's fugitive leaders are building terrorist bases in the jungles of Bangladesh is totally speculative. Had Harrison taken a visit to Bangladesh, he would have come across a Bangladesh vastly different from his imagination.

Bangladesh watchers should know that the country is making sincere efforts to strengthen democracy, accelerate economic growth and energize social harmony and progress. As a part of this process, the government has undertaken several measures to eradicate corruption, effect institutional reforms, encourage respect for human rights and rule of law and promote freedom through alleviation of poverty, elimination of illiteracy, empowerment of women and restoration of accountable government.

Bangladesh is working toward holding free and fair elections before the end of 2008, as stipulated in the Bangladesh Election Commission's road map. To address fears of election fraud, Bangladesh is poised to be the first-ever country in the region to issue digital national identity cards for more than 80 million eligible voters.

Regrettably, Harrison's Op-Ed article is silent on all these steps taken by the caretaker government. It also failed to recognize the extraordinary role played by the interim head of the government, Chief Advisor Dr. Fakhruddin Ahmed. Mentioning the army chief as "Bangladesh's military ruler" and drawing comparisons to Pakistan's President Pervez Musharraf was also imprudent and inaccurate. Bangladesh's armed forces and other law enforcement agencies have prepared for the orderly transition to a sustainable democratic government in Bangladesh. Gen. Moeen U. Ahmed, chief of Bangladesh's armed forces, has made it abundantly clear in interviews with the local and foreign media that neither the armed forces nor he has any desire to meddle in the country's politics. Indeed, Bangladesh's army has played an uncompromising role in securing and safeguarding the country's integrity and sovereignty. Sadly, Harrison ignored this fact too.

On regional stability and peace, Bangladesh and India have been cooperating to combat terrorism in the region through bilateral and multilateral instruments. It is in the interest of India and Bangladesh, both being members of the South Asian Assn. for Regional Cooperation, to ensure peace and stability in the region.

The government of Bangladesh remains committed to the task with which it is entrusted and would appreciate a true reflection of its efforts. It is because of sincere and honest governance that the people of Bangladesh are on the verge of realizing their hope for a vibrant and democratic future, and we would appreciate some understanding from our friends and well-wishers.

Sheikh Mohammed Belal is the deputy chief of mission for the Embassy of Bangladesh

Source: LA Times

Choking charity route to terror financing

by Sandeep Dikshit

An international conference on countering terrorist financing of charity organisations quietly got under way here on Monday, with a strong representation from India and its neighbours.

Quarterbacked by the United States, the conference is being held against the backdrop of increasing international realisation that charities are being used for financing terrorist activities.

Officials from Afghanistan, Pakistan, Sri Lanka, Nepal, Bangladesh and Maldives, apart from the U.S and India, are attending the event.

Hosted by the U.S. Embassy and the Asia Pacific Group on Money Laundering, it aims at promoting government action to prevent terrorist outfits from exploiting humanitarian or religious charities as a way of concealing the illegal international movement of funds.

At the conference, technical experts, under the Asia Pacific Group on Money Laundering, are exploring best practices and a wide range of options for cooperation to protect the charitable sector from this regional and global threat. The U.S. is aware of the need to strike the right balance. Charities complicit in terrorist groups must be shut down and adequate oversight is required to promote transparency, but the world must ensure safe alternative channels to provide charity in critical areas such as humanitarian services.

International financial flows came under scrutiny after the financial system in the 1990s provided for seamless movement of funds across the world.

Source: The Hindu