Banks warned on suspicious foreign investment source

“Banks have been warned against such investment proposal,” said a BB circular issued yesterday. The warning came in the wake of concern of terrorist financing from foreign sources. The circular reads investment proposal from suspicious individuals or organisations is sometimes found nontransparent and incomplete. As a result, the financing source cannot be confirmed. It noted that the aim of such investment proposal is not to invest but to pocket some money from local sponsors in the name of primary expense. Such foreign investors try to allure local sponsors by getting them an opportunity to get big investment from other sources, it added. The central bank suggested banks to be cautious about such investment proposal to avoid risk of being affected and to take necessary measures to make their sponsor clients aware. Banks have to confirm that an internationally well-reputed bank or financial institution is involved with investment process before accepting any foreign investment proposal, according to the circular. “If any investment proposal appears suspicious, banks should inform its respective sponsor client about it and give necessary advices.” Banks have also been asked to circulate the instruction to all branch managers across the country. The central bank will have to be informed about the measures taken by the banks in this regard within two weeks from the date of issuance of the circular.