Bangladesh is the first among the South Asian Countries to formulate Money Laundering Prevention Act in 2002 and establish a separate department for implementing the Act and taking actions in this regard. Thus, FIU of Bangladesh was established in June 2002, in Bangladesh Bank (Central bank of Bangladesh) named as 'Anti Money Laundering Department'. Later on, it was transformed to Bangladesh Financial Intelligence Unit (BFIU) in 25 January, 2012 under the provision of Money Laundering Prevention Act, 2012 and has been bestowed with operational independence.

BFIU acts for ensuring compliance with the standards of the Financial Action Task Force (FATF). BFIU also works as per the relevant provisions under Money Laundering Prevention Act 2012, Anti Terrorism act 2009 and the Rules issued under these legislations.