Factors influencing anti-money laundering regulatory approaches towards casinos and cryptocurrencies in Bangladesh
| DOI | https://doi.org/10.1108/JMLC-04-2021-0034 |
| Published date | 28 July 2021 |
| Date | 28 July 2021 |
| Pages | 445-454 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Md. Zahurul Haq,Zainal Amin Ayub,Zuryati Mohamed Yusoff,Md Abdul Awal Khan |
Factors influencing anti-money
laundering regulatory approaches
towards casinos and
cryptocurrencies in Bangladesh
Md. Zahurul Haq
School of Law, College of Law Government and International Studies,
Universiti Utara Malaysia, Sintok, Malaysia
Zainal Amin Ayub
Legal and Justice Research Centre, School of Law, Universiti Utara Malaysia,
Sintok, Malaysia
Zuryati Mohamed Yusoff
School of Law, College of Law Government and International Studies,
Universiti Utara Malaysia, Sintok, Malaysia, and
Md Abdul Awal Khan
Independent University, Dhaka, Bangladesh
Abstract
Purpose –This paper aims to critically explore the factors influencing the regulation of gambling and
cryptocurrencies as part of anti-money laundering (AML) initiatives in Bangladesh. As a member of the Asia/
Pacific Group on money laundering, Bangladesh must adopt a risk-based approach to regulate these entities.
Design/methodology/approach –This study applied an exploratorydesign and investigated the real
nature of the challenge Bangladesh facing in adopting a risk-based approach to regulate gambling and
cryptocurrencies.
Findings –This study demonstrates that current regulatory responses towards gambling and
cryptocurrencies in Bangladesh are largely influenced by passive wait-and-see policy instead of a proactive risk-
based approach, a measure mandated by the Financial Action Task Force (FATF). It demonstrates that these
financial entities, which are poorly regulated because of their unclear legal status in Bangladesh and the
regulator’s apparent lack of understanding of the type of threats they pose, may facilitate money laundering.
Effective risk-based regulationis required to control potential risks.
Research limitations/implications –This paper focuses on two specific areas –gambling and
cryptocurrencies –which are linked to two specific FATF Recommendations: designated non-financial
businesses and professions (DNFBPs)and new technologies. Further research is required to investigate the
concernfrom the perspective of other entities.
Practical implications –The results of this study will help inform policymakers about ways in which current
regulatory approaches may need to be modified to better combat money laundering and financing of terrorism.
Originality/value –According to the authors’knowledge, this is the first study aiming to explore
challenges Bangladesh confrontsin implementing a risk-based approach for DNFBPs and new technologies.
Therefore, it provides important insights into the dilemma regulators facing in implementing global AML
standardswithin their traditional legislative and regulatoryframework.
Keywords Bangladesh, Cryptocurrency, Casinos, Risk-based approach, Money-laundering
Paper type Research paper
Anti-money
laundering
445
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 445-454
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-04-2021-0034
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