The effectiveness of AML policies in mitigating financial crimes : a case study of Dhaka Bank

Abstract

Dhaka Bank was my first internship record to be submitted for my BBA degree at BRAC University for which I was required to submit a report. I was employed by the internship from July 04th to October 04th in the Kakrail office in the country. I worked in Anti-Money Laundering and the Counter Financing of Terrorism unit head office in Dhaka. The internship's primary goal was to understand the workings of a financial institution and evaluate the integration of ethics and compliance with the Money Laundering Prevention Act 2012, the BFIU Guidelines (2022). While interning at the organization, the student had responsibilities, including customer due diligence (KYC/CDD) verification, compliance report analysis at the branches, preparation of STR/CTR summaries to the BFIU, and internal audit documentation. These tasks involved the Dhaka Bank's integrated Transaction Monitoring System (TMS) and its connection to the Core Banking System (CBS) to understand the AML risk assessment and the real-time analysis of reporting which was quite outstanding.As part of the report, the analytical project, “The Effectiveness of AML Policies in Mitigating Financial Crimes: A Case Study of Dhaka Bank PLC” provided the framework for the project. The evaluation of Dhaka Bank’s framework with respect to Anti Money Laundering Practices was based on the Financial Action Task Force’s 40 Recommendations and the BFIU compliance. The results demonstrated the absence of sustained compliance culture, independent governance, with automated systems in place to oversee and monitor the compliance and training of staff. The quantitative data provided for the compliance demonstrated clear sustained improvement with the 2021-2023 data period reporting a suspicious-transaction reporting of 64 percent. The training provided to staff was auditable and attainment of 91 percent was recorded. Audit results were in compliance with 5, and marked improvement was noted over the reporting period, with a 4.2 to 4.6 compliance of reporting. In the report a number of improvement opportunities were remarkable, and they included improvement of predictive analytics through Artificial Intelligence to identify unusual patterns, complete digital integration, verification of ownership of business entities. In summary, the Anti Money Laundering compliance of Dhaka Bank PLC. is considered the best practice. The practicing I polite and friendly of the organization ethical with banking confirm to me by technology safe to with and the by the on the country of the banking comply the holds to the of the in the to hold with me.