University of Wollongong Research Online University of Wollongong Thesis Collection University of Wollongong Thesis Collections 2013 Improvising: a process of overcoming interagency information sharing deficiency in an AML regime Zahurul Haq Md Recommended Citation Haq, Zahurul Md, Improvising: a process of overcoming interagency information sharing deficiency in an AML regime, Doctor of Philosophy thesis, Faculty of Law, University of Wollongong, 2013. http://ro.uow.edu.au/theses/3929 Research Online is the open access institutional repository for the University of Wollongong. For further information contact the UOW Library: [email protected] Faculty of Law IMPROVISING: A PROCESS OF OVERCOMING INTERAGENCY INFORMATION SHARING DEFICIENCY IN AN AML REGIME A thesis submitted in fulfilment of the requirements for the award of the degree DOCTOR OF PHILOSOPHY from UNIVERSITY OF WOLLONGONG by MD ZAHURUL HAQ FACULTY OF LAW 2013 THESIS CERTIFICATION I, Md Zahurul Haq, declare that this thesis, submitted in fulfilment of the requirements for the award of Doctor of Philosophy, in the Faculty of Law, University of Wollongong, is wholly my own work unless otherwise referenced or acknowledged. The document has not been submitted for qualifications at any other academic institution. Md Zahurul Haq March 2013 i TABLE OF CONTENTS THESIS CERTIFICATION ............................................................................................... i TABLE OF CONTENTS ................................................................................................. iii LIST OF FIGURES AND TABLES ............................................................................... vii ABBREVIATIONS LIST ................................................................................................ ix GLOSSARY ................................................................................................................... xiii ABSTRACT .................................................................................................................... xv ACKNOWLEDGEMENTS .......................................................................................... xvii 1 GENERAL INTRODUCTION ............................................................................... 1 1.1 Introduction ......................................................................................................... 1 1.1.1 Background of the Thesis ............................................................................... 2 1.1.2 The Global AML Regime and Its Key Functions .......................................... 3 1.1.3 Annual Non-Cooperative Countries and Territories (NCCT) Reports .......... 6 1.2 Requirements of the Effective Implementation of Global AML Standards ....... 7 1.3 Key Features of the Global AML Reporting Regime ......................................... 9 1.3.1 AML Reporting System ............................................................................... 11 1.3.2 Functioning of the AML Reporting System ................................................. 11 1.4 Contextualising the Study: AML Compliance and Low Capacity Countries ........................................................................................................... 19 1.5 Substantive Area: The Emergent Research Problem and the Research Question(s) ........................................................................................................ 22 1.5.1 Substantive Area: The AML Reporting Regime in Bangladesh .................. 22 1.5.2 Research Problem and Questions ................................................................. 23 1.6 Ethical Considerations ...................................................................................... 25 1.6.1 Voluntary Informed Consent ........................................................................ 27 1.6.2 Privacy and Confidentiality .......................................................................... 28 1.7 Purpose of the Research .................................................................................... 28 1.7.1 Specific Aim of the Research ....................................................................... 29 1.8 Literature Review .............................................................................................. 29 1.9 Scope and Delimitation ..................................................................................... 30 1.10 Significance of the Study .................................................................................. 30 1.11 Thesis Structure ................................................................................................ 31 1.12 Limitations of the Study .................................................................................... 33 iii 1.13 Conclusion ........................................................................................................ 34 2 DESCRIPTION OF THE SUBSTANTIVE AREA .............................................. 37 2.1 Introduction ....................................................................................................... 37 2.1.1 Methodology ................................................................................................ 39 2.1.2 Historical Background of the Bureaucracy of Bangladesh .......................... 40 2.1.3 Government and Public Administration....................................................... 45 2.2 Bureaucracy ...................................................................................................... 46 2.2.1 Bureaucracy and Economic Growth ............................................................ 48 2.2.2 Money Laundering and Bureaucracy ........................................................... 52 2.3 Bureaucracy in Bangladesh .............................................................................. 54 2.3.1 Civil Administration..................................................................................... 54 2.3.2 Legacy of Malfunction in Civil Administration........................................... 61 2.3.3 A Cultural Explanation ................................................................................ 65 2.4 AML Regime in Bangladesh ............................................................................ 70 2.4.1 General Situation of Money Laundering ...................................................... 70 2.4.2 Economic Growth and Money Laundering .................................................. 73 2.4.3 An Overview of the Financial Sector: .......................................................... 75 2.4.4 Overview of AML Strategy ......................................................................... 77 2.4.5 AML Regime in Bangladesh: The Issues ..................................................... 83 2.5 Conclusion ........................................................................................................ 96 3 METHODOLOGY ................................................................................................ 99 3.1 Introduction ....................................................................................................... 99 3.2 Grounded Theory and its Discovery ............................................................... 100 3.3 Origin and Divergences .................................................................................. 101 3.3.1 Roots of Grounded Theory ......................................................................... 101 3.3.2 Divergences between Glaser and Strauss ................................................... 103 3.4 The Study ........................................................................................................ 104 3.5 Use of GT Methodology ................................................................................. 105 3.5.1 Choice between Glaser and Strauss ........................................................... 106 3.6 Recruitment, Sampling and Logic of Ongoing Inclusion ............................... 108 3.6.1 Recruitment ................................................................................................ 108 3.6.2 Sampling .................................................................................................... 108 3.6.3 Logic of Ongoing Inclusion ....................................................................... 109 iv 3.7 Data Collection, Recording, and Analysis ...................................................... 112 3.7.1 Collection ................................................................................................... 112 3.7.2 Literature as Source of Information ........................................................... 114 3.7.3 Profile of the Participants ........................................................................... 115 3.8 Data Management and Analysis ..................................................................... 116 3.8.1 The Coding Process .................................................................................... 117 3.8.2 Substantive Coding .................................................................................... 118 3.8.3 Memos ........................................................................................................ 122 3.8.4 Theoretical Coding ..................................................................................... 123 3.8.5 Memo Sorting and Integration ................................................................... 123 3.8.6 Writing ......................................................................................................