A five-member visiting team of the Bretton Woods institutions will discuss the issues with the Bangladesh Bank (BB), commercial banks, and Attorney General's Office. The meetings are expected to go on till February 1.

Comprised of Maud Bokkerink, Marlene Manuel, Cheong-Ann Png and Maureen Sanders of IMF and Mark Butler of WB, the team will discuss with the BB a wide range of issues including the draft money laundering act.

The act titled anti-money laundering and terrorist financing act, 2005 however has returned from the cabinet recently and is likely to undergo a number of amendments aiming to curb the authority of the central bank, sources said.

The activities of Financial Intelligence Unit, current regulations and the situation regarding remittances, Suspected Transaction Reports and Cash Transaction Report of the commercial banks among others will also come up for discussion.

The team is expected to sit down with the representatives of nationalised commercial banks, private banks, foreign banks, money-changing institutions, and post office as well to discuss the anti-money laundering and terrorist financing issues.

With the attorney general and police they will discuss the issues of money laundering investigations and share their experiences regarding illegal remittances while various aspects of money-laundering cases will be on the agenda for the meeting with the magistrates of the money laundering court.

The visitors may also meet the hundi dealers.

Following the meetings, the team will prepare a report detailing the flaws in the existing systems and suggesting remedies for those to the government.

They will also extend technical help to the BB in carrying out its plan to set up a financial intelligence unit under the proposed anti-money laundering and terror-financing act.

Bangladesh and the US are likely to create an institutional framework of counter-terrorism bureau to enhance Dhaka's capability to deal with terrorism and militancy.

US Assistant secretary of State for South Asian Affairs Christina Rocca, who is scheduled to be in Bangladesh on January 26, will discuss the modalities of the proposed bureau.

After the terrorist attack of 9/11, the US undertook initiatives to prevent terrorist financing in global context and as part of that initiative Bangladesh is working towards framing a new anti-money laundering and terrorist financing act.

The Bangladesh government has taken steps to enact a new law in place of the existing money laundering act on the basis of the US government's suggestions through Financial Systems Assessment Team (FSAT).

The draft law was sent to the cabinet for approval last month, but the cabinet sent it back for further scrutiny so that it does not clash with a new anti-terrorism law being crafted by the home ministry.

The draft law had a provision of setting up Financial Crimes Investigation and Prosecution Office (FCIPO) that was supposed to be directed by the BB. The law also outlines some 'predicted crimes'.

After the cabinet sent it back a meeting was held with the finance secretary in the chair last week. Another meeting regarding the proposed law may take place this week. This time it is to be presided over by the law secretary.

In last week's meeting the law and home ministries have proposed to cut off the terrorist financing issue and enact an anti-money laundering act instead.

The ministries also proposed to leave out from the law the provision for FCIPO, as they want to incorporate it into the anti-terrorism law proposed by the home ministry.