The application of artificial intelligence (AI) has revolutionised the healthcare sector, finances, and even the police, yet it also leads to numerous risks, including discrimination, breach of privacy, and biased judgment. Algorithmic Impact Assessment (AIA) is one of the tools that is used to manage these risks. AIA is an approach that contributes to assessing and reducing the possible damages of AI systems in advance and after their activation as well. This research paper delves into the issue of AIA in the regulatory setup of Bangladesh. Bangladesh, similarly, to other nations, has experienced more of the usage of AI, but it does not have a formal framework through which the technologies may be controlled. The paper will use global models of regulation over AI, as exemplified by the European Union (EU), the United Kingdom (UK), and Canada, to suggest a framework that could be used to implement AIA in Bangladesh. The study reveals that embracing AIA in Bangladesh has the potential to minimise the risks that AI has on the rights of citizens and encourages equity in decision-making. The paper has a conclusion where it suggests that it is necessary to establish a National AI Regulatory Authority, create a standardised AIA framework, and establish public-private collaboration to ensure ethical development of AI in Bangladesh.