Brokers advised to know source of large investment in stocks

Brokers have been advised to know the sources of the large amount before placing buying orders on be-half of their big clients to help check money laundering through capital market, reports BSS.
"Investment of large amount in stock without knowing the profession and the sources of the fund of the investors would create scope of money laundering, which would eventually make market vulnerable and riskier", the head of the Bangladesh Financial Intelligence Unit (BFIU) said.
Abu Hena Mohammad Razi Hasan, also a deputy governor of Bangladesh Bank (BB), pointed out that BB had already brought necessary changes to the rules and regulations and institutional framework in the past few years to combat money laundering and terror financing.
The deputy governor was addressing the Chief Anti-Money Laundering
Compliance Officer (CAMLCO) Conference 2015 at Bangladesh Bank Training Academy (BBTA) in the city. Merchant bankers, asset managers and security custodians attended the conference.
Hasan cautioned the share brokers that they should also take extra care in dealing with the low priced shares, new shares, shares of the companies with weak fundamentals and those are sponsored and owned by influential, but dishonest people of the society.
"Manipulators and unscrupulous owners and employees of some companies make huge money by manipulating market by using price sensitive information," he said, suggesting that the brokers could play a significant rule in checking such "predicate offences".
He advised asset management companies to complete properly the KYC (know your clients) of the clientele including sponsor directors, beneficiary owners and IPO placement holders.

Brokers advised to know source of large investment in stocks

Brokers have been advised to know the sources of the large amount before placing buying orders on be-half of their big clients to help check money laundering through capital market, reports BSS. Investment of large amount in stock without knowing the profession and the sources of the fund of the investors would create scope of money laundering, which would eventually make market vulnerable and riskier, the head of the Bangladesh Financial Intelligence Unit (BFIU) said. Abu Hena Mohammad Razi Hasan, also a deputy governor of Bangladesh Bank (BB), pointed out that BB had already brought necessary changes to the rules and regulations and institutional framework in the past few years to combat money laundering and terror financing. The deputy governor was addressing the Chief Anti-Money Laundering Compliance Officer (CAMLCO) Conference 2015 at Bangladesh Bank Training Academy (BBTA) in the city. Merchant bankers, asset managers and security custodians attended the conference. Hasan cautioned the share brokers that they should also take extra care in dealing with the low priced shares, new shares, shares of the companies with weak fundamentals and those are sponsored and owned by influential, but dishonest people of the society. Manipulators and unscrupulous owners and employees of some companies make huge money by manipulating market by using price sensitive information, he said, suggesting that the brokers could play a significant rule in checking such predicate offences. He advised asset management companies to complete properly the KYC (know your clients) of the clientele including sponsor directors, beneficiary owners and IPO placement holders.