A team of Financial Action Task Force, a global watchdog on money laundering, yesterday started evaluation of the measures Bangladesh has taken to arrest money laundering and terrorist financing.

The eight-member panel will conduct intensified evaluation until October 22, and its feedback will determine whether Bangladesh will continue to remain out of the grey list of the watchdog. The country was delisted in February last year. Staying out of the list reduces the costs and time of the country's financial transactions with the rest of the world.

MA Mannan, state minister for finance and planning, made a presentation before the FATF team on what steps the country has taken.

The government has amended the anti-money laundering act, which was approved by the cabinet last week. Since the parliament is not in session, the act will be issued as an ordinance within a few days.

The Bangladesh Financial Intelligence Unit will be given more autonomy under the ordinance. An official of the central bank's deputy governor level will be given full-time appointment as the unit's chief.

Several steps are also being taken for quick disposal of money laundering and terrorist financing related cases.

Mannan said the prime minister herself and the cabinet division have been closely monitoring whether the steps taken to counter money laundering and terrorist financing cases are functioning properly.

The FATF team appeared satisfied with the measures, Mannan told reporters after the meeting.

Every member country must identify, assess and understand the money laundering and terrorist financing risks for the country, the FATF recommends.

The country should take action, including designating an authority or mechanism to coordinate actions to assess risks, and apply resources, aimed at ensuring that the risks are mitigated effectively.

A finance ministry official said they have already prepared a national risk assessment report and based on that they will take the next steps.

The report dealt with sector-specific risk assessment of bank, non-bank financial institutions, money changers and money remitters, insurance companies, capital market intermediaries, and non-governmental organisations.

In conducting risk assessment of banks, non-bank financial institutions, money changers and money remitters, a risk scoring tool was applied.

The finance ministry official said they gave two separate reports to the FATF in April and June   so that the evaluation is successful. The FATF team also held a meeting with the Anti-Corruption Commission yesterday.