Clari5 Market Insights
BANGLADESH
Bangladesh Bank
Real-time Vessel / Container Tracking System for Banks
Bangladesh Bank Mandates Vessel/Container Tracking to Curb Ghost/Phantom Shipments
By when must banks comply with the mandate?
With immediate effect.
Why has Bangladesh Bank introduced the new mandates?
Every year more than $7.5 bn is laundered from Bangladesh. Trade-Based Money Laundering (TBML) is one of the major contributors. This trend is leading to a spike in illicit financial flows. While money launderers utilize TBML techniques to evade money/proceeds of crime away from source of money, criminals on the other hand have devised new modus-operandi around TBML and are making ghost/phantom shipments to exploit the lucrative incentives and subsidies offered by the Bangladesh government to exporters. To safeguard Authorized Dealers in Bangladesh, Bangladesh Bank has issued FE Circulars # 07 & 09 mandating the tracking of underlying exports and imports.
Highlights of the mandate
- In the circulars, Bangladesh Bank has referred to Bangladesh FIU’s guidelines related to Infrastructure Level Risk Assessment and mandated the implementation of Vessel Tracking System and Container Tracking System. Initially, the mandate was enforced for export shipments alone, but later extended to import shipments too. Authorized Dealers are mandated to conduct the tracking of shipments in all cases.
- This demands establishing/implementing a real-time Vessel Tracking System and Container Tracking System, that is recognized by a competent authority for relevant trade transactions.
How Clari5 helps Bangladesh FIs quickly comply with Bangladesh Bank’s mandates
Highlights
Advantages
Highlights
- Clari5 TBAML solution is a part of the Clari5 platform offering and has a vessel tracking feature with which banks can track vessels using the vessel name or vessel IMO number
- Real-time positioning of vessels using radio signals from the Automatic Identification System (AIS) transponders located on each vessel by leveraging 3rd party data sources
- Synthesizing intelligence from multiple source systems (Trade Finance Systems) and other 3rd party databases
- Behavioral profiling around past historical transactions
- Real-time Monitoring & Alert Generation for suspicious movements of vessel, in real-time, based on defined policies
- Built-in adapters for seamless integration with various systems for real-time, cross-channel intelligence
Advantages
- Real-time positioning of vessels, supported by AIS feed from 3rd party data sources
- Auxiliary services on top of vessel tracking:
- Screening of sanctioned entities against Watchlist/Sanction Lists (sanctioned entities include Vessels, Ports, Importer, Exporter, Shipping Company, Freight Forwarders, Remitter, Beneficiary, etc.)
- Dual usage goods check
- Feature to alert concerned authorities of a Bank/FI in real-time by raising red flags in the Clari5 Case Management System, for further investigation