Increased Vigilance On Opening LC To Prevent Money Laundering

The central bank (Bangladesh Bank) is concerned about money laundering abroad through imports. To prevent money laundering, the bank wants to increase vigilance before opening LC (letter of credit) on imports, including checking the price of the product.

Today Monday (September 18) Bangladesh Bank has issued a notice with necessary instructions in this regard.

In order to prevent money laundering, importers and agents have to provide additional information including full details, quality, brand, date of manufacture, packaging information and grade of the imported product, the notification said. Information about imported products should be given in such a way that the quality of the products can be distinguished. The product must provide information verifying the price and quantity per unit.

It is also said in the directive, last October, Bangladesh Bank announced in the notification that commercial banks are responsible for verifying the price of imported products. Before opening LC (Letter of Credit) on imports, banks are instructed to verify the price of the product as well as check the supplier's credit report. Besides, it has been asked to ensure that the price is paid in accordance with the import policy, so that a stronger position can be taken to prevent money laundering.

According to the notice, in order to facilitate accurate price verification of imported goods in accordance with the international market price, the information regarding the imported goods should be given to the bank in the PI (proforma invoice) sent by the exporter or in the indent provided by their domestic agent. In case of import of multiple products, the description, value, brand, date of manufacture, packaging information and grade (if any) of each product by which the quality of the product can be distinguished and price and quantity per unit should be mentioned separately. In case of import of different goods generally all the goods should be shown separately according to their nature without measuring them in a specific unit like kg, liter or piece etc. Even International Chamber of Commerce approved Incoterms and transport fare information where applicable should also be attached.