What is Bank?

Bank is a Government approved Financial Institution which collect/receive fund from  surplus unit, repayable on demand or otherwise and deploy to the deficit unit duly observed some rules & regulations.

Who is Banker?

“Banker means a person transacting the business of accepting, for the purpose of lending or investment, of deposit of money from the public, repayable on demand or otherwise and withdraw able by Cheque, Draft, Order or otherwise” 

(Section 3b, NI Act – 1881)

Central Bank in Bangladesh (Bangladesh Bank)

With a view to manage the monetary and investment/credit system of Bangladesh to stabilizing domestic monetary value and maintaining a competitive external par value of the Bangladesh Taka towards fostering growth and development of country’s productive resources in the best national interest, the Government of Bangladesh made a law named as ‘The Bangladesh Bank Order, 1972’ (President’s Order no. 127 of 1972 dated 31.10.1972). As per Clause 3(1) of Bangladesh Bank Order, 1972. The name of the Central Bank of Bangladesh is called ‘Bangladesh Bank’ which shall be deemed to have taken effect on the 16th day of December, 1971.

Functions of Central Bank (Bangladesh Bank)

• Note issue
• Enlistment of Banks
• Bankers’ Bank
• Governments’ Bank
• Clearing House maintenance
• Supervision of the country’s foreign currency
• Lender of last resort to Govt. & Banks
• Advisor to the Govt. on financial matter
• Supervisor of Banks & Financial Institutions
• Research & Statistics
• Formulation & Implementation of monetary policy
• CAMELS rating of Commercial banks.
• Supervision and training for implementation of AML and Anti Terrorism Acts
• Maintain the intrinsic value of Taka currency
• Work as safe-guard or parent of all banks
• Play a vital rule to develop/emphasis a specific sector as per policy of the government
• Control inflation and Interest/profit rate of all banks
• Help government to implement policy or strategy for economic development of the country 
• Submission of returns
• Audit & Inspection
• Appointment of MD/CEO
• Investment/Credit Control
• Discount rate policy
• Open market operations
• Monitoring of non-performing investment/loans
• Risk Management
• Foreign Exchange Regulation Act

Monetary policy applied by Bangladesh Bank to increase/decrease money supply

• Bank rate
• CRR & SLR
• OMO (Open Market Operation) of Government securities.

Important laws relating to banking in Bangladesh

• Bangladesh Bank Order – 1972
• Bangladesh Bank Nationalisation Order – 1972
• The Bank Company Act – 1991
• The Companies Act – 1994
• The Financial Institution Act – 1993
• The Negotiable Instrument Act – 1881
• The Contract Act – 1872
• Anti Money Laundering Act – 2009
• Artha Rin Adalat Ain – 2003
• Transfer of Property Act – 1882
• Guidelines for Foreign Exchange Transactions – 1996
• Service rule
• Bankruptcy Act-1997
• Convertibility of our Currency-1993
• Limitation Act-1908
• Civil law
• Criminal law
• Stamp Act-1998
• Import & Export Act-1950
• Import & Export Policy
• UCPDC- 600, URC-522, URR-725, INCOTERMS, URDG – 458 (ICC Publications)
• Manuals of General Banking, Investment, Foreign Exchange, Internal Control & Compliance, Money Laundering, Asset Liability Management, Core Risk Management.
• Anti-Terrorism Act-2009

First Anti Money Laundering Act in Bangladesh and meaning

At first Anti Money Laundering Law was introduced in our country on 30.4.2002.

The meaning of ‘money laundering’ as per first Anti Money Laundering Act:

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