AN INTERNSHIP REPORT ON MONEY LAUNDARING AND ITS PREVENTION POLICY: A CASE STUDY OF SONALI BANK LIMITED

Abstract

This report completed money laundering and its prevention policy of commercial banks in Bangladesh. Most of the money laundering occurred through financial institutions like banks, That’s why Sonali Bank Ltd. (as a largest commercial bank in Bangladesh) is selected to gather information about money laundering and its prevention policy to prepare this report. This report is completed by a descriptive analysis based on primary and secondary data. As money laundering is a sophisticated and dynamic crime, the criminals continuously take innovative processes to use the financial system to launder money. This study focuses on the techniques which are used to launder money in Bangladesh are bank capture, cash smuggling, offshore accounts (shell banks), underground banking, gambling, investing in legitimate business, round-tripping and structuring. In developing countries like Bangladesh, it is more difficult to combat money laundering than developed countries because of inadequate regulatory environment and vulnerable financial system. Bangladesh Bank issues guidelines to facilitate the implementation of prevention of money laundering act. According to the guideline, all financial institutions have to develop anti-money laundering policy to ensure safety and soundness of their institutions. To reduce the money laundering in Bangladesh, all financial institutions should develop a strong technical anti money laundering policy and should follow the guidelines of central bank in case of daily transactions, record keeping and account opening.