Islami Bank Bangladesh Limited and Accuity, the leading global anti-money laundering (AML) compliance solutions provider signed an agreement on Real Time Anti Money Laundering Screening Solution Sunday at Islami Bank Tower in presence of Engr. Mustafa Anwar, Chairman (Acting), Engr. Md. Eskander Ali Khan, Chairman, Executive Committee and Mohammad Abdul Mannan, Managing Director and CEO of Islami Bank Bangladesh Limited.

Islami Bank Bangladesh Limited and Accuity, a UK-based anti-money laundering (AML) compliance solutions provider signed an agreement Sunday at Islami Bank Tower in Dhaka.

The implementation enables the holistic management of real-time screening and compliance programs for Islami Bank at enterprise-wide level.  

In presence of Engr. Mustafa Anwar, Chairman (Acting), Engr. Md. Eskander Ali Khan, Chairman, Executive Committee and Mohammad Abdul Mannan, Managing Director and CEO of Islami Bank Bangladesh Limited the agreement was signed between Abdus Sadeque Bhuiyan, Executive Vice President and DCAMLCO of Islami Bank and Sean Norris, Asia Pacific Director of Accuity. Senior Executives of Islami Bank and officials from Accuity were also present on the occasion.

“Islami Bank is the first bank in the country to integrate real-time screening solutions with its core banking system,” said a statement.

This also marks Accuity's first Compliance Link solution implementation in the market and the continued commitment to this rapidly developing financial sector in Asia.

Engr. Mustafa Anwar, Chairman (Acting) of Islami Bank said that the IBBL has formulated a culture of compliance of all regulatory authorities.

The continued development of technology playing remarkable contribution in banking sector. Such efforts are part of this culture. He expected success of the technology in anti money laundering solution.

Mohammad Abdul Mannan, Managing Director and CEO of Islami Bank said, "The addition of Accuity's Compliance Link solution will improve the speed and efficiency of our customer accounts screening, SWIFT Payments and NRB remittances screening against UN, OFAC, and EU Sanctions reducing manual identification process of match type by over 50%.

Accuity's flexible and scalable filtering solution, combined with their accurate data and expertise, will allow us to centralise, automate and streamline our screening processes to ensure compliance with AML regulations, reduce risk and increase operational efficiency."

Sean Norris, APAC Director at Accuity said: "This is an important development in anti-money laundering compliance in Bangladesh's evolving banking sector, with Islami Bank leading the way by adopting a risk-based approach to help reduce risk and drive efficiencies.

Accuity's Compliance Link is a flexible platform that offers one-stop solution for all AML screening needs.

World Bank has postponed Dhaka visit of its macro forecasting support mission as the country gets struck in the political standoff.

The visit of Analytical and Advisory Activities (AAA) mission was aimed at advising the government on revision of current fiscal year budget and also preparation of next fiscal budget.

The mission was scheduled to arrive today and stay till March 5.

World Bank’s Dhaka office has already conveyed the development to the Economic Relations Division.

Quoting World Bank sources, an ERD official said once stability was restored in Bangladesh politics, the WB mission would visit Bangladesh soon. 

But State Minister for Finance MA Mannan denied the political unrest as reason behind the suspension of the visit though he refrained from citing “the real cause” behind.

“Political unrest is not the cause. There is a different reason for suspension of the WB team’s visit.”

The main objective of the mission was to assist the government in developing a macro forecasting model to provide inputs in the preparation of medium-term macroeconomic framework underpinning the annual budget.

Sources in the Finance Division said the size of the revised budget for the current fiscal year might finally stand at Tk2,40,000 crore, down by nearly Tk10,000 crore from the original one.

 Finance Minister AMA Muhith initially estimated the next fiscal year budget outlay at Tk2,92,000 crore, over 16% bigger than the current outlay. The size of the budget has been increasing every year. 

In fiscal 2005-06, the size of the budget was Tk61,000 crore which rose to Tk2,51,000 crore. 

The WB mission was also to advise on ensuring more efficient use of government exchequers.

The proposed WB team would comprise the Bank’s lead economist Zahid Hussain, economists Faya Hayati, Cristina Savesco, training expert Afroza Alam and Kamrun Nahar Chowdhury. The team was supposed to meet top officials of finance ministry and Bangladesh Bank.

In 2006, the then World Bank country director Christina Wallich left Dhaka fearing of bomb attack by Islamic outfit Jamatul Mujahideen Bangladesh during BNP-led four-party alliance regime.

Prime Minister Sheikh Hasina said blockade had caused a loss of over Tk1,20,000 crore in the first 52 days. 

Md. Abdur Rouf has been appointed Deputy Managing Director of Sonali Bank Limited. Prior to his new assignment, he was General Manager of the Investment Corporation of Bangladesh (ICB), said a press release. In addition, he was Chairman, Board of Directors of ICB Securities Trading Ltd. During his long service career, he worked as General Manager at Karmasansthan Bank, CEO of ICB Capital Management Ltd. Besides, he worked in different departments of the ICB. Rouf did his Masters in Management. He is associated with different social welfare activities.

BASIC Bank has failed to implement seven of the ten conditions imposed by the central bank for performance improvement.

But a high official of the state-run bank said it has improved significantly in areas in which it has control after the new management and board took over in July last year.

However, the targets of lowering default loans, meeting capital deficit and recovery cannot be achieved overnight, he added.

BASIC Bank's loan growth in 2014 stood at 9.39 percent as per Bangladesh Bank's instruction to bring it below 16 percent.

Another condition of the central bank was to ensure that the operating expenses do not increase more than 10 percent over previous year's expenses, which the bank succeeded in doing. At the end of December 2014, its operating expenses stood at Tk 275.52 crore, which was 90.73 percent of the target set by the BB.

The advance-deposit ratio would have to be maintained within 81 percent up to June 30, 2015. It stood at 82.28 percent in December 2014, which is close to the target.

The growth of non-funded loans stood at 2.15 percent last year against the target of not more than 10 percent.

However, BASIC Bank failed to stick to the single borrower exposure limit.

According to BB condition, the bank cannot grant more than 15 percent of its capital to a single borrower. But it crossed the limit in case of 83 clients.

It lent Tk 3,370 crore more than it was allowed to, according to the central bank review.

Asked, the BASIC Bank official said it was the previous management and the board that granted the loans, and their successors could not lower the limit in such a short time.

Earlier, a finance ministry report said BASIC Bank has progressively increased its single borrower exposure limit since 2009 in a gross violation of banking rules.

However, BASIC Bank is trying to cut it gradually, added the official.

In 2014, BASIC Bank made total cash recovery of Tk 286.39 crore, which is only 42.60 percent of its target. The central bank set a target of realising a minimum of Tk 630 crore by 2013.

It is also set to fail to bring down the non-performing loans. BASIC Bank is supposed to bring it to less than 20 percent by June 2015, but as of December 2014 its NPL ratio stood at 53.32 percent.

The official of the bank said many loans have been given using fake documents and in fraudulent ways.

“So, now our main target is to establish the real ownership of the loans and to complete proper documentation for those. Once this is done, we will be able to realise the loans by putting pressure on the borrowers.”

In line with the agreement signed with BB, the bank also failed to make up its capital shortfall. Rather, it widened to Tk 2,223 crore in December 2014. It has to fill the gap by June 2015.

The bank received around Tk 790 crore from the government for meeting the capital deficit, and has sought more funds, said the banker.

In July 2013, the government appointed a new board and a managing director to BASIC Bank, after a central bank investigation unearthed financial irregularities that cost the bank Tk 4,500 crore during the tenure of previous chairman and managing director.

Mohammad Jalaluddin has joined Bangladesh Development Bank as deputy managing director, it said in a statement yesterday.

Prior to his current assignment, Jalaluddin served Sonali Bank in the same capacity, it said.

He began his career with Agrani Bank, where he worked for three decades. He majored in finance from the Institute of Business Administration, Dhaka University.