ESG Global Vision

Laws and regulations

In force

All governmental, semi-governmental and non- governmental entities.

The Money Laundering Laws of Bangladesh set out rules to control illicit financial transactions. The Money Laundering Laws have established the Bangladesh Financial Intelligence Unit ("BFIU”) as a separate wing under the Bangladesh Bank, the central bank of the Country. The BFIU is authorised to gather information from governmental and non-governmental institutions regarding financial transactions and take immediate measures for any ‘suspicious transaction’.

Money laundering is broadly defined under the Money Laundering Laws as knowingly moving, converting or transferring proceeds of any offence for the purposes of concealing the illegal source of the money or property or for smuggling such illegal proceeds outside Bangladesh. The definition of money laundering extends to cover various processes through which the crime is being committed, including 'predicate offences', such as bribery.

Under the Money Laundering Laws, it is also considered as offence for anyone who commits or abets or conspires to commit the offence of money laundering.  There is also reporting obligations on governmental and non-governmental Organizations to report any doubtful transaction or attempts of such transaction as a “suspicious transaction report” to the BFIU. Also, if there is any doubtful transaction or attempt to perpetrate such a transaction which might fall under the ‘predicate offences’, then non-financial institutions are also required to immediately report to the BFIU about the matter as a ‘suspicious transaction’.

Failure to report such suspicious transactions may result in a fine which may fall between BDT. 50,000 (taka fifty thousand) to BDT. 25,000,00 (taka twenty-five lacs) (£400 - £800).  In addition, the license or the authorisation for carrying out commercial activities of such organizations could be cancelled.

The senior management authority (every director, proprietor, manager or secretary) of an entity committing the offence of money laundering may be subject to punishment if found directly involved in the offence.

Find out more:

Money Laundering Prevention Act 2012

Money Laundering Prevention Rules 2013

Laws and regulations

In force

All private companies, financial and non-financial institutions and NGOs.

Financial transparency in Bangladesh is monitored by imposing certain reporting obligations under The FRA 2015. The FRA 2015 was enacted in Bangladesh with the aim to establish a regulatory framework for financial reporting in. This law outlines the requirements and standards for financial reporting by various entities, including companies, NGO’s, banks, insurance providers, and other financial institutions.

The key objectives of the act include:

• Ensuring the preparation and presentation of reliable and accurate financial statements.
• Enhancing transparency and accountability in financial reporting.
• Establishing a framework for the adoption of the International Financial Reporting Standards (IFRS) in Bangladesh.
• Strengthening the regulatory oversight of financial reporting by establishing the Financial Reporting Council (FRC).
• Promoting investor confidence and protecting the interests of stakeholders.

This act grants extensive authority to the FRC in Bangladesh, empowering it to effectively regulate and monitor financial reporting practices within the country. The FRC's responsibilities encompass a wide range of crucial tasks, including the establishment of accounting and auditing standards, the execution of inspections and investigations, the imposition of penalties for instances of non-compliance, and the active promotion of the adoption of industry best practices in financial reporting.

Laws and regulations

In force

All individuals

Human rights in Bangladesh are protected by constitutional guarantees. The Constitution of Bangladesh refers to a set of "human rights" that are incorporated on the Constitution using the technical term "fundamental rights." These are a group of civil and political rights that are adopted from the Universal Declaration of Human Rights. The Constitution of Bangladesh protects the fundamental rights by guaranteeing judicial enforcement; these rights are listed under Article 26 to Article 47A of the constitution and are given supremacy over all other laws.

The public can resort to judicial review and Public Interest litigation (PIL) to enforce their fundamental rights. Any individual whose Fundamental Rights have been violated by the State is eligible to initiate judicial review by filing a writ petition at the High Court Division (HCD) of the Supreme Court of Bangladesh. Even if his personal Fundamental Right has not been violated, any person may submit a writ petition under a Public Interest Litigation on behalf of the aggrieved person or for public interest. The HCD is authorized to issue directives and orders to uphold the fundamental rights of the citizens. 

Laws and regulations

In force

All individuals

The workplace health and safety requirements for workers of any commercial establishment are envisaged under the Labour and Employment Laws of Bangladesh. Also, Bangladesh Building Code provides some measures to be taken for health and safety during the construction of any establishments in Bangladesh. Further, BLA enacted and BLR provide certain rules and regulations for the protection of health and safety of workers.

Under the BLA an adult worker cannot work for more than eight hours in a day with a maximum of an additional two hours of overtime. The adult worker must be given at least one hour of break for a rest or meal if working for more than six hours. In a week, an adult worker cannot be required to work more than 48 ordinary hours and not more than 60 hours including any overtime (the number of overtime hours in a week cannot exceed 12 hours given that an adult worker is only allowed to work two hours of overtime a day). In a year, the average weekly working hours including overtime cannot exceed 56 hours. Adult workers are also not allowed to work in more than one establishment in a single day unless the prior permission of the Chief Inspector of the DIFE has been obtained.

Further, female workers cannot be required to work between 10 p.m. to 6 a.m. unless they have first given their express written consent in a prescribed form under BLR.

The BLA imposes certain obligations upon the establishment or the employer to maintain the health and safety of the workers. The following measures are applicable if any establishment or employer fails to comply with any obligation as prescribed under the BLA:

1. Factory Inspectors are given certain powers to take steps requiring improvement of the establishment if inspectors believe that there are certain issues with the establishment which poses health and safety concerns.
2. Criminal Prosecution can be initiated if an establishment is  found guilty or in violation of BLA, BLR or National Building Code 2015.

Find out more:

Bangladesh Labour Act 2006

Bangladesh Labour Rules 2015 

Laws and regulations

In force

All private entities

The Bangladesh environmental conservation standards are protected under the rules set out under the Environmental Laws. The Environmental Laws have established the Bangladesh Department of Environment (“BDOE”) which monitors, regulates and enforces compliance with the Environmental Laws, through a licencing regime.

Under the Environmental Laws, industrial units are  required to obtain an Environment Clearance Certificate (“ECC") from BDOE in order to operate in Bangladesh. Depending on the impact on environment and the category of industry involved, ECCs are categorized as Green, Orange A, Orange B and Red. The process and requirements for obtaining ECCs under each category vary and are increasingly stringent (from Green to Red), depending on the ECC category. 

While industries such as agriculture, culinary, and looming fall under the Green or Orange A category, for environmentally hazardous industries such as tannery, chemicals, ship building, power and energy, these are categorized under the Orange B and Red category. Industries falling under these categories are required to submit Initial Environmental Examination (IEE) reports, Environmental Management Plans (EMP) and Environmental Impact Assessments (EIA) as a prerequisite to obtain the ECC. 

The Draft National Solar Energy Roadmap (2021-2041)’ which sets out a 20-year plan of the Bangladesh government for renewable energy development, aims that out of the total solar PV capacity, 40% will be covered by large-scale solar PVs.

The Environmental Laws also deal with the disposal of hazardous waste. Orange B and Red category industries are mandatorily required to install effluent treatment plans (ETP) to treat their waste water before releasing it into receiving environment. 

Also, recently the GOB has adopted the hard waste management rules 2022 (“Rules”) which define all abandoned, residual, overplus and trashy substance which are hazardous to environment as ‘hard waste’. The Rules establish a national coordination committee combining members from the secretariat body to local government under the GOB which is responsible to arrange disposal of hard waste at the root level. The BDOE reserves the power to impose fines for environmental pollution, improper discharge of waste products and effluents and failure to take measures to protect the environment. Further, the Environmental Laws also empower the GOB to declare any area as ecologically critical and take necessary steps accordingly to protect the eco-system. 

Find out more:

Environment Conservation Act 1995

Environmental Conservation Rules 1997

Laws and regulations

In force

All individuals and private and public entities.

Data privacy and cyber security in Bangladesh is mostly governed by the rules set out under the ICT Act (as amended in 2009 and 2013) and the DSA. However, the data privacy and cybersecurity regime are still in its early stage of development and the Bangladesh government is revising and updating these laws on a piecemeal basis in line with the public policy goals and requirements.

Data protection and cyber security in Bangladesh is mainly governed by the Information and Communication Technology Act 2006 ("ICT Act") and the Digital Security Act 2018 ("DSA").

Consent of the individual is a central element of the Data Privacy Law. The Data Privacy Laws require that any person or entity collecting or storing data will need permission from the individual sharing the data for any subsequent use or dissemination or may only use it in connection with the services for which permission was granted. As such, a written consent/permission will be required to collect, supply, or use any identity information of an individual.

The ICT Act and the DSA (collectively the "Data Privacy Laws") set out, amongst other things, that:

• any person who collects, sells, takes possession of, supplies or uses any person's 'Identity Information' without the legal authority, may be subject to punishment under the law. 'Identity Information' means among other things any external, biological or physical information or any other information which on its own or jointly can identify a person, including their name, address, date of birth, parent's name, signature, national identity number, finger print, passport number, retina image, DNA profile, and security related questions;
• access, without the permission of the relevant person or authority, into any computer or digital device or digital network system is punishable by law;
• collecting any data or information from any computer or computer network without permission of the relevant person is punishable by law; and
• illegally accessing any computer or digital system of any organization without consent and with the intent to introduce changes or otherwise transfer or save data is punishable by law.

The Data privacy and cyber security laws apply to the whole of Bangladesh and to persons who are involved in any cyber offence within Bangladesh or from outside Bangladesh. The ICT 

Act determines the legal authenticity of any information contained in digital documents. It also lays down the structure for the applicable security regulation by recognising digital signatures and identities for digital records,

There is an upcoming law concentrating on data privacy which is at present in the drafting stage. It is expected to apply to all legal entities in Bangladesh and persons who are collecting, processing, and using shared or otherwise processed data relating to citizens of Bangladesh within Bangladesh or from outside Bangladesh. It will also apply to data processors or data controllers processing data in connection with any business carried out in Bangladesh or any activity of offering goods or services that involves profiling individuals.

The Draft Act will establish a Data Protection Office under the Director General of the Digital Security Agency, which will be the main regulator for enforcement and supervision of the laws. They will have investigative, corrective, and advisory powers, along with certain functions like overseeing the implementation of the Draft Act, promoting protection and observance of the right to privacy and of data, among other ancillary functions.

Find out more:

Information and Communication Technology Act, 2006

Digital Security Act 2018 

Laws and regulations

In force

All governmental, semi-governmental and non- governmental entities.

In order to control corruption, the Government of Bangladesh enacted the ACCA 2004 which established the Anti-Corruption Commission ("Commission”). The formation and duties of the Commission are primarily covered under the ACCA 2004. The Commission is authorised, amongst other things, to inquire into and investigate offences involving corruption by government officers, to file and conduct cases pursuant to the Act based on inquiries and investigations made by it, to inquire into any allegation of corruption on its own initiative or in response to an application made by an aggrieved person. 

There is no specific offence termed  as ‘corruption’ under Bangladeshi laws. Neither is the term corruption defined. Rather the ACCA 2004 refers to a number of offences under the Penal Code 1860 which are considered as corruption offences when committed by public servants. According to the Corruption Act 1947, a public servant committing the offence of criminal misconduct will amount to committing corruption. The ACCA 2004 sets out the procedure to prosecute and punish acts of corruption in Bangladesh.  

It also sets out examples of behaviours and actions that would constitute criminal misconduct.

Find out more:

Anti-Corruption Commission Act 2004

Penal Code 1860