Research Article
Effectiveness of Suspicious Transaction Reporting in Bangladesh Banking Sector: Evidence from Regulatory Outcomes
Mohammad Jahangir Alam
,
Md. Kamruzzaman*,
Khandaker Mizanur Rahman
Issue:
Volume 14, Issue 4, August 2026
Pages:
256-262
Received:
13 May 2026
Accepted:
25 May 2026
Published:
17 July 2026
DOI:
10.11648/j.ijefm.20261404.11
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Abstract: This study examines the effectiveness of Suspicious Transaction Reporting (STR) mechanisms within the banking sector of Bangladesh by analyzing the relationship between reporting activity and enforcement outcomes. Despite significant growth in STR submissions in recent years, concerns remain regarding the extent to which increased reporting contributes to effective anti-money laundering (AML) enforcement. Drawing on secondary data from Bangladesh Financial Intelligence Unit (BFIU) annual reports covering the period 2017–2025, the study adopts a descriptive and analytical approach to evaluate trends in reporting, intelligence dissemination and prosecution outcomes. The findings reveal a notable divergence between compliance-driven reporting and practical enforcement effectiveness. Although financial institutions have substantially increased STR submissions, the conversion of reported transactions into intelligence outputs and formal enforcement actions remains comparatively limited. The study further identifies several institutional and regulatory challenges affecting AML effectiveness, including limitations in analytical capacity, weaknesses in inter-agency coordination and uneven implementation of risk-based supervisory practices. From a theoretical perspective, the findings support compliance theory by suggesting that reporting behavior within financial institutions may be influenced more by regulatory conformity than by substantive enforcement objectives. The study argues that reporting volume alone is an insufficient indicator of AML enforcement effectiveness. The paper contributes to the literature on AML regulation and banking governance in emerging financial systems by providing an outcome-oriented assessment of STR effectiveness in Bangladesh. The findings also offer practical policy implications for strengthening financial intelligence utilization, improving institutional coordination and enhancing the overall effectiveness of AML enforcement mechanisms.
Abstract: This study examines the effectiveness of Suspicious Transaction Reporting (STR) mechanisms within the banking sector of Bangladesh by analyzing the relationship between reporting activity and enforcement outcomes. Despite significant growth in STR submissions in recent years, concerns remain regarding the extent to which increased reporting contrib...
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Research Article
Exercising Geopolitical Influence Through the Financial System
Srichander Ramaswamy*
Issue:
Volume 14, Issue 4, August 2026
Pages:
263-272
Received:
12 June 2026
Accepted:
27 June 2026
Published:
17 July 2026
DOI:
10.11648/j.ijefm.20261404.12
Downloads:
Views:
Abstract: Globalization is undergoing a profound structural transformation driven by rapid digital innovation and intensifying geopolitical rivalry. The international financial system, particularly the global payment architecture, has emerged as a key arena through which states and private actors seek to exercise political and economic influence. As money forms the foundation of payment systems, competing initiatives involving cryptocurrencies, stablecoins, and central bank digital currencies are reshaping the governance of cross-border finance and raising important questions about monetary sovereignty. At the same time, countries are strengthening regional financial safety nets, developing bilateral payment connectivity, and promoting local currency settlement arrangements to reduce dependence on existing financial infrastructures dominated by Western economies. Competition over the international trade invoicing currency has consequently intensified as governments seek greater strategic autonomy and geopolitical leverage. Existing studies rely on SWIFT data to uncover the competition for the invoicing currency in global trade. But such studies will underrepresent the shifts in trade settlement currencies, particularly because they will not capture trade involving sanctioned countries. The article therefore draws on information reported by PBOC on the share of Chinese Yuan used in cross-border goods trade as a proxy to capture the shifts. It then argues that meaningful erosion of dollar dominance will require not only political commitment but also the development of deeper financial markets, correspondent banking networks, trade finance, and foreign exchange hedging infrastructure in alternative currencies. These developments present both opportunities and some challenges for the future evolution of the global financial system.
Abstract: Globalization is undergoing a profound structural transformation driven by rapid digital innovation and intensifying geopolitical rivalry. The international financial system, particularly the global payment architecture, has emerged as a key arena through which states and private actors seek to exercise political and economic influence. As money fo...
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