Subject: Submission of the internship report titled “Money Laundering Risk and its Mitigation Process Adapted by Janata Bank Ltd”. It is my great pleasure to submit my internship report on the topic "Money Laundering Risk and its Mitigation Process Adapted by Janata Bank Ltd". I am KhoshNur Zaman, Masters of Business Administration (MBA) student from Daffodil International University and hereby declare that the report on the topic "Money Laundering Risk and its Mitigation Process is adapted by Janata Bank Ltd." are prepared for the internship.
Money Laundering Risk and its Mitigation Process adapted by Janata Bank Ltd" has been completed as per the detailed guidelines of the Department of Business Administration of Daffodil International University. " has been prepared to meet the requirements of the MBA degree.
Chapter-01 Introduction
- Introduction
- Research Aims
- Research Objective
- Broad Objective
- Specific Objectives
- Scope of the study
- Limitations of the study
- Ethical Consideration
If you want to make a recommendation about the findings, it can be more effective for Janata Bank Ltd.'s Money Laundering Risk Management System. The study was on the risk of money laundering and its mitigation process adapted by Janata Bank Ltd. What is the risk of money laundering and how do they reduce the risk to secure their banking. I had the opportunity to study the various types of risks and the risk management system of JBL and then practiced and observed practically the Money Laundering Risk Management Policy of JBL, Uttara Branch.
JBL is also under the policy of Bangladesh bank for money laundering risk management process. As an intern I received the necessary information from the Head Office and had the opportunity to study money laundering risk management and its mitigation process adapted by Janata Bank.
Chapter-02
Overview of Janata Bank Limited
Organizational Background of JBL
The bank throughout the country has a very wide network of 872 branches. The authorized capital is currently BDT 2,0000 million and BDT 5,000 million is paid up capital. Janata Bank was converted into a limited company on 15 November 2007. JBL offers all commercial banking services. Acceptance letter of credit, Janata Bank provides all commercial banking services to its customers with focus on the national interest and sustainable growth.
Background
Corporate Information of Janata Bank Limited
Janata Bank operates 905 branches across the country, including 4 overseas branches in the United Arab Emirates. Alpha Credit Rating Limited (Based on audited balance sheet and other information) Rating method Long-term Short-term government support AAA AR-1 No government support A+ AR- 2 Outlook Stable Rating date September 19, 2013 Expiry date September 18, 2014.
Corporate Governance of JBL
- Board of Directors
Chairman of the Board of Directors
Members of the Board of Directors
- Mission and Vision of JBL
- Financial Performance Analysis
- Primary Learning
- Position of Internship:In Janata bank, I worked as an intern under the supervisor
- Secondary Learning
I completed my internship at Janata Bank Ltd. When I was an intern, I had some responsibility and duties in the bank. During internship, I tried to get ideas on how to improve the risk management system of Janata Bank, which is my research topic. My main mission was to gather my required information, take practical experience, to be familiar with the banking process.
Office Visit: Sometimes I visited the main department by taking permission from my supervisor to collect my necessary information about my subject. Input Data: Once when I was working under foreign exchange department, I entered some local and foreign cash. Bill Calculation: When I was under the bill department, I recorded the bill according to their series and calculated them.
Organizing Coupons: While working in the pension department, I learned about different types of coupons and also wrote different types of pension related checks. Register details: Sometimes I register details in IFDC, LC local, LC foreign register, P.A.D (Paid against Document) register. EXREG: I enter the export related information data into the computer and enter the data into the export register file.
The internship program is the compulsory part of the MBA program for the Daffodil International University student. The objective of the internship is to provide practical work experience before entering professional working life.
Chapter-3
Money Laundering Risk and it's Mitigation Process
- Risk management
- Money Laundering
- Money Laundering risk
- Stages of Money Laundering
- Reason of Combating Money Laundering
- The Offence of Money Laundering
- REQUIREMENTS OF ANTI-MONEY LAUNDERING POLICY
- Establishment of Anti-Money Laundering Department
- Functions of Anti-Money Laundering Department (AMLD) will be
- Transaction Monitoring Process
- DETECTION AND REPORTING OF SUSPICIOUS TRANSACTIONS
Money laundering is a serious threat to the financial systems of all countries and leads to the destruction of the image and character of the country's sovereignty. Internationally, this has been widely recognized. The results of money laundering are dire and damaging. Fighting money laundering is therefore very critical for a country's economy. The FATF (Financial Action Task Force) was established in 1989 and is a concrete step taken on a global level. Janata Bank Limited treated the fight against money laundering as a team effort and prepared its policy in accordance with the "Money Laundering Prevention Guidance Notes" and the "Money Laundering Prevention Act of the Bangladesh Bank. AML risk as identified by Bangladesh Bank. Bank, is one of the biggest risks in the banking sector.
Money laundering distorts the value of resources and services and leads to misallocation of capital. This can lead to an unsustainable base of liabilities and unhealthy asset structures thereby generating risks for banks of financial instability. One of the most serious microeconomic consequences of money laundering is felt in the private sector. Money laundering shifts economic power from the economy, government and people to criminals among its other negative socio-economic consequences.
Crime of Money Laundering: Money laundering will be treated as an offense [See Section 4(1) of the Act]. Offense of not reporting suspicious transactions: It is also an offense for reporting organizations not to make a report to Bangladesh Bank where they suspect that a money laundering offense has been or is being committed. The most important element of a successful anti-money laundering program is the commitment of the bank's senior or management to develop and enforce anti-money laundering measures that can prevent criminals from using their money laundering facilities, thereby ensuring that they comply with their obligations under the law.
The Bank will create a separate AntiMoney Laundering Department (AMLD) at its head office to manage and control the overall operations of AML and CFT. Money Laundering Section (AMLS) will perform AML and CFT related tasks.AMLD must monitor and execute the Bank's corporate anti-money laundering policies, practices and activities and report directly to the Chief Anti-Money Laundering Compliance Officer (CAMLCO). Respond to inquiries of a question requiring directions to the branches to determine money laundering concerns.
Legal Obligation to Report Suspicious Transactions Section 25(1)(Gha) of the Prevention of Money Laundering Act 2009 obliges us to report to Bangladesh Bank if we suspect that a money laundering offense has been or is being committed. There is a clear reporting chain whereby these suspicions will be immediately escalated to the Chief Anti-Money Laundering Officer (CAMLCO). When they are busy.
Chapter-4
Money laundering risk and it's mitigation process adapted by Janata Bank Limited
- Risk Management committee of Janata Bank
- Risk Management system of Janata Bank
- Risk Mitigation Methodology of Janata Bank
- Risk Monitoring and reporting system of Janata Bank
- How Janata Bank Limited Can Help in Combating Money Laundering
- Anti-Money Laundering Policy (AML Policy) of Janata Bank Limited
- Janata Bank Limited Anti-Money Laundering Organogram
- TRAINING AND AWARENESS
- Money Laundering Risk Mitigation adaption by Janata Bank
- Observation about the money laundering risk and mitigation process adapted by Janata Bank
A good understanding of a client's business and history of financial transactions and commitments is one of the best ways to prevent and combat money laundering. In this theory, Jan ata Bank Limited has already implemented a sound "Know Your Customer" policy to enroll customers. Complete and accurate information to avoid participating in money laundering. Thus, the Bank's efforts to combat money laundering are mainly focused on the process where the activities of the launderer are most sensitive to recognition and are therefore mainly focused on the deposit taking procedures. i.e., in the deployment scene. Thus, the Bank's efforts to prevent money laundering are mainly focused on the process where the activities of the launderers are more sensitive to recognition and therefore are mainly focused on the procedures of receiving deposits. The Bank's Money Laundering Section and Training Institute (JBTI) also undertakes employee training programs designed to increase awareness of money laundering techniques and tools, etc., in order to combat money laundering. Janata Bank has been developed in accordance with the "Prevention of Money Laundering Guidance Notes" and related circulars issued by the Bangladesh Bank to facilitate the implementation of the Prevention of Money Laundering Act, 2009.
Because banks are vulnerable to use by money launderers, the Bangladesh Bank (Bangladesh Central Bank) tests the adequacy of the banks' anti-money laundering procedures and the level of compliance with those procedures. As a banking company, Janata Bank Limited is required to comply with the laws, regulations and guidelines of Bangladesh Bank from time to time. The policy is intended to help Janata Bank Limited comply with the anti-money laundering rules and regulations of Bangladesh. Janata Bank Limited intends to use this framework as a guideline for determining the adequacy of its internal controls, regulations and anti-money laundering procedures. Policies and procedures to prevent money laundering and for identification, record keeping and internal reporting; They have all the paper, like books and brochures, about the anti-money laundering process and other policies.
The money laundering mitigation process is not clearly known to all JBL employees because different departments are engaged in different activities. All rules, regulations and policies regarding money laundering and its mitigation process have been formulated by Bangladesh Bank and JBL is instructed to follow them. JBL must report on money laundering, CTR and STR, to the Bangladesh Bank on a monthly basis.
Who must report the state of money laundering in the branch once a month to the regional bank for management. JLB organizes mandatory trainings for JBL employees to acquire adequate knowledge about the risk of money laundering and the process of reducing it throughout the year. Bangladesh Bank is not putting as much pressure on possible errors or unsatisfactory report related to Janata Bank's anti-money laundering process.
Chapter-5
Findings, Recommendations and
Conclusion
Findings
Although Janata Bank has all the policies, rules and regulations against money laundering, but they are not always used to follow them. The monthly report that Janata Bank has to submit to the Bangladesh bank, once some properly done. RRT is very low CTR, on the other hand other foreign banks and private banks of our country have a high rate in this case.
Sometimes due to the pressure from the top level and sometimes for different types of danger the STR is not properly reported to the Bangladesh Bank, sometime when Bangladesh Bank notices a big difference between CTR. Janata Bank has its board and senior management approved policies and procedures to stop money laundering. Janata Bank Limited has a legal and regulatory enforcement program which includes an officer designated to oversee and oversee the AML process.
Janata Bank has policies and procedures that require all customer identification and transaction-related records to be retained.
Recommendations
Conclusion
Bibliography A) Books
Reports
Web Sites
