Money Laundering:

As per Money Laundering Prevention Act, 2002 it means-

i) Properties acquired or earned directly or indirectly through illegal means;
ii) Illegal transfer, conversion, concealment of location of property, acquired or earned
directly or indirectly through legal or illegal means or providing assistance to such
activities.

Criminal engages in money laundering for three main reasons:

First, money represents the lifeblood of the organization that engages in criminal conduct for
financial gain. Criminals must make the money they derived illegally appear legitimate.
Second, a trail of money from an offense to criminals can become incriminating evidence.
Third, the proceeds from crime often become the target of investigation and seizure. Criminals
must conceal their existence or, alternatively make them look legitimate.

Three basis stages:

i) Placement- Illegal funds or assets are first brought into the financial system.
ii) Layering: Illegal funds or assets are moved, dispersed and distinguished to conceal their
illegal origin.
iii) Integration- Illegal funds or assets are entered into the economy appearing as normal
business funds.

Punishment for obstructing investigation:

• Imprisonment min 1 year and/or fine at least Tk.10,000/-.
• Offence is non-bail able.
• Officials are personally liable for non-compliance.

Bangladesh Bank can impose fine on any bank/NBFI min Tk.10000/- max Tk.100000/-.