Role of financial intelligence unit (FIU) in anti-money laundering quest: Comparison between FIUs of Bangladesh and India

Abstract

Purpose

The purpose of this paper is to examine the effectiveness of the Financial Intelligence Unit (FIU) of Bangladesh and India in efforts of combating money laundering by these countries through a comparative assessment of several aspects of both FIUs.

Design/methodology/approach

The two FIUs are compared by using a “multiple case design” method of assessment. The framework for assessment was developed following the earlier models developed by scholars and recommendations of international institutions working on money laundering. Publicly available information from the respective websites of FIUs and annual reports has been used to complete the study.

Findings

The study has found that FIUs of both countries have improved significantly in fulfilling their mandates. There are several commonalities and differences between the two agencies. Despite showing improvement in several respects, both countries need to address certain basic deficiencies of the existing framework to make the agencies more effective.

Originality/value

It is supposed that this study will assist both countries to transform their existing FIUs to robust agencies in anti-money laundering efforts by taking care of the weaknesses identified here. It is hoped that the present study will encourage similar studies regarding the problematic areas of FIUs of Bangladesh and India as identified and in respect of FIUs of other countries.

Citation

Sultana, S. (2020), "Role of financial intelligence unit (FIU) in anti-money laundering quest: Comparison between FIUs of Bangladesh and India", Journal of Money Laundering Control, Vol. 23 No. 4, pp. 931-947. https://doi.org/10.1108/JMLC-01-2020-0003