All types of financial transactions across the banking sector are being brought under instant, automated monitoring. As a result, the Bangladesh Financial Intelligence Unit (BFIU) will be able to detect any financial crime committed through bank accounts in real time.
According to the agency, once the new system is operational, all forms of financial crime, including anonymous loans, loan misuse, money laundering and trade-based fraud, will be detected immediately.
Mobile financial services (MFS) will gradually be brought under this initiative as well. With the introduction of the new system, Bangladesh will enter a new era of financial transaction oversight.
At present, the BFIU does not receive information on suspicious transactions, or STRs, in real time. The flow of such information depends entirely on the relevant bank. Moreover, under the existing framework, the agency receives no information on financial crimes committed through trade.
In this context, the BFIU has undertaken an initiative to bring all types of transactions under real-time, automated surveillance. This technology-driven and automated service has been named the Proactive Transaction Monitoring System (PTMS), or early-warning transaction monitoring mechanism.
A pilot phase of the system is scheduled to be launched later this month. Initially, 13 banks will be connected to the system, with all banks to be brought under its coverage in subsequent phases, according to relevant sources.
At present, the BFIU does not receive information on suspicious transactions, or STRs, in real time. The flow of such information depends entirely on the relevant bank. Moreover, under the existing framework, the agency receives no information on financial crimes committed through trade.
Speaking to Prothom Alo, Syed Mahbubur Rahman, managing director of Mutual Trust Bank, said, “If this system can be fully implemented, financial crimes in the banking sector will be reduced significantly.”
Stating that alongside bankers, all bank customers will also become more cautious, he further said, “If anonymous loans, fraudulent letters of credit and money laundering can be prevented, the country’s economy will develop rapidly. Many countries have progressed by adopting this system. We need to move in this direction without delay.”
Are CTR and STR mechanisms failing?
Under the current system, banks are required to submit a Cash Transaction Report (CTR) to the BFIU when cash deposits or withdrawals of Tk 1 million or more are made through banking channels. These reports must be submitted by the 22nd of each month.
In addition, banks must identify suspicious transactions as STRs and report them to the BFIU. However, reports are submitted only when banks themselves deem a transaction suspicious.
In many cases, banks fail to report serious offences, leaving financial irregularities beyond detection. Dishonest officials, directors and influential individuals exploit these loopholes. The agency also receives no information on trade-based money laundering or the laundering of loan funds.
This initiative will make everyone more cautious. Large-scale transactions may decrease.Ahsan Zaman Chowdhury, secretary general, ABB, and MD of Trust Bank
According to BFIU data, although the volume of STRs increased in the 2024–25 financial year compared to 2023–24, around 80 per cent were related to routine banking transactions. There were very few allegations concerning trade-based money laundering or loan irregularities. As a result, agency officials believe that the existing preventive mechanisms are not effectively reducing risks related to money laundering and financial misconduct.
How PTMS will work
The PTMS is being introduced as a technology-based, automated system to prevent irregularities in the financial sector. Through this technology, the source and destination of every transaction conducted through banking channels will be identified, and automated early-warning alerts will be generated for any transaction that is inconsistent with the account profile.
These alerts will be transmitted automatically to the relevant bank branch, the bank’s head office, and the BFIU. This will enable the BFIU to take immediate action in cases of large or abnormal transactions.
Relevant officials noted that under existing regulations, customers are required at the time of opening a bank account to declare the sources from which funds will be deposited and the purposes for which funds will be spent. Under the PTMS, an alert will be issued if a loan is not used for its declared purpose.
According to them, under the new rules, key indicators, including the nature and capacity of importers’ and exporters’ businesses, beneficiary information and the flow of funds, will be incorporated at the time of opening letters of credit.
In the initial pilot phase, 13 banks will be connected to the new system. These are Sonali Bank, The City Bank, Dutch-Bangla Bank, BRAC Bank, Islami Bank, United Commercial Bank, Bank Asia, Southeast Bank, South Bangla Agriculture (SBAC) Bank, Trust Bank, Mutual Trust Bank, Eastern Bank and Prime Bank.
Following the pilot phase, the BFIU aims to roll out the system across all banks within the current year.
Asked about the initiative, Ahsan Zaman Chowdhury, secretary general of the Association of Bankers, Bangladesh (ABB), and managing director of Trust Bank, told Prothom Alo, “This initiative will make everyone more cautious. Large-scale transactions may decrease.”
“With proper oversight, financial crimes will decline in the future, which will have a positive impact on the economy. This initiative will be beneficial for the country’s financial sector,” he added.