United News of Bangladesh

The Bangladesh Financial Intelligence Unit (BFIU) on Thursday asked banks to freeze the accounts of former finance minister AHM Mustafa Kamal, commonly known as “Lotus Kamal”, former commerce minister Tipu Munshi and their family members. The BFIU also sought details of their bank transactions along with keeping their accounts frozen for the next 30 days. Apart from that, the intelligence unit instructed the banks to suspend their locker facilities for the same period.

Bangladesh Bank-appointed administrator Muhammad Badiuzzaman Didar took charge of the mobile financial service (MFS), Nagad, on Thursday. The central bank appointed the administrator to oversee Nagad amid allegations of the MFS not adhering to various regulatory procedures. Abu Taleb, director of the Directorate of Posts, was present when the administrator took charge on Thursday. At the time, Bangladesh Bank’s Additional Director Md. Habibur Rahman, Joint Directors Anwar Ullah, Palash Mandal, Abu Sadat Mohammad Yasin, Deputy Director Chayan Biswas, and Ayub Khan assumed responsibility as assistant officers. The Nagad officers informed them about the activities of the company.

To address the ongoing crisis at Islami Bank Bangladesh, the nation’s largest Shariah-compliant bank, Bangladesh Bank has appointed a new board of independent directors. The overhaul follows widespread allegations of massive financial irregularities linked to the S Alam Group. The Banking Regulations and Policy Department of the central bank issued an official letter to Islami Bank’s managing director, instructing immediate implementation of the changes. Md Obayed Ullah Al Masud, former managing director of Rupali Bank, has been appointed as the new chairman of Islami Bank’s board. Joining him as independent directors are Mohammad Khurshid Wahab, a former executive officer of Bangladesh Bank; Mohammad Abdul Jalil, a former deputy general manager at Al Arafah Islami Bank; M Masud Rahman, a former professor of finance at the University of Dhaka; and Md Abdus Salam, a chartered accountant. This shake-up effectively ends the seven-year control of Islami Bank by S Alam Group, which has been accused of misappropriating nearly Tk 75,000 crore under the guise of loans. The group's influence in the bank was solidified in 2017, when they took over ownership, leading to rampant financial exploitation. Mohammed Saiful Alam, chairman of S Alam Group, had placed his eldest son, Ahsanul Alam, as the chairman of the recently dissolved board. Following the formation of the interim government, Bangladesh Bank dissolved the board of directors of Islami Bank Bangladesh and National Bank. Both banks had been under scrutiny for catering to special interests at the expense of financial stability. S Alam Group’s control of Islami Bank had raised significant concerns, particularly because the group accumulated 81.92% of the bank’s shares—well beyond the legal limit. Under the Bank Companies Act, no single person, family, or group is permitted to own more than 10% of a bank’s shares. To bypass this regulation, S Alam Group had acquired 131 crore 89 lakh 12 thousand 165 shares through 24 different institutions. Adding to the measures against S Alam Group, the Bangladesh Securities and Exchange Commission (BSEC) has banned the transfer of their shares in Islami Bank, further tightening the oversight on the group’s activities.  

Bangladesh Bank has appointed an administrator to manage the operations of the mobile financial service (MFS) Nagad. In addition to the administrator, the central bank has appointed six officers as 'assistant officers' to help oversee the management of Nagad. The Bangladesh Bank officials will visit Nagad's office on Thursday (tomorrow) to familiarize themselves with its operations and will take over the management of the MFS, according to Mezbaul Haque, Spokesperson and Executive Director of the central bank. Bangladesh Bank officials indicated that the current board of directors and management will be dissolved once the administrator assumes control. Following the takeover, a comprehensive audit of Nagad's activities will be conducted. Although this process will take time, normal services of the MFS will continue uninterrupted. The future of the institution will be determined based on the audit's findings. The central bank issued an internal order on Wednesday, appointing Muhammad Badiuzzaman Didar, Director of Bangladesh Bank’s Chattogram office, as the administrator of Nagad for a one-year term. The order also named six central bank officials as assistant officers: Additional Director Md. Habibur Rahman, Joint Directors Anwar Ullah, Palash Mandal, and Abu Sadat Mohammad Yasin, Deputy Director Chayan Biswas, and Ayub Khan. Nagad, which has rapidly grown to become the second-largest MFS in Bangladesh, has faced allegations of not adhering to various regulatory procedures since its inception.

The Ministry of Finance has accepted Sonali Bank Chairman Ziaul Hasan Siddiqui's resignation and cancelled the appointments of Grameen Bank Chairman AKM Saiful Majid and the Chairman of Palli Sanchay Bank Akram Al Hossain and Managing Director (MD) Sheikh Md. Jaminur Rahman. The Financial Institutions Division of the Ministry of Finance issued four separate notifications in this regard on Tuesday. Sonali Bank Chairman Ziaul Hasan Siddiqui resigned on Monday. Ziaul Hasan Siddiqui was appointed as the first chairman of Sonali Bank in 2019. He was reappointed in August 2022. He was the Deputy Governor of Bangladesh Bank from 2006 to 2011. In between, he was an advisor to the Beximco Group. Meanwhile, the FID canceled the employment contract of Grameen Bank Chairman AKM Saiful Majid. He is a teacher at the Institute of Business Administration (IBA) of Dhaka University. He was first appointed to this position on March 16, 2020, by the government. After being appointed for two years, he was reappointed two more times for two years. The FID reappointed him last April. Apart from this, the appointment of Akram Al Hussain, Chairman of Palli Sanchay Bank has also been cancelled. In the bank, government-nominated director Mohammad Mohiuddin has been asked to perform the duties of the chairman. The managing director of the bank Sheikh Md. Md. Jaminur Rahman was also canceled. The FID issued separate notifications regarding the cancellation of their appointments.

The rot in the banking sector started in 2017, when Bangladesh Bank (BB) allowed a large industrial group to fully control a large private bank in the country., according to  the Association of Bankers, Bangladesh (ABB) Chairman and Managing Director of BRAC Bank Selim RF Hussain. The leading banker said this to journalists through a virtual platform on Tuesday. The situation was not that bad before. Basically, the central bank itself has gone on the path of compromise to give benefits to Chattogram-based special groups, he opined. Although he didn't mention them by name, it is understood he was talking about the Chattogram-based S Alam Group's takeover of Islami Bank. In 2017, the Awami League government took the initiative to make Islami Bank 'Jamaat-e-Islami free' as a political decision. The S Alam Group, close to the outgoing Awami League government, then took control of the bank's ownership and management using a Defense Intelligence Agency. Now one-third of the bank's loans are owned by the group interests, said the chairman of the ABB, an association of bank owners and managing directors. Asked what kind of measures should be taken in the case of the Shariah-based banks faced with liquidity crisis, Hussain said in response, "As far as I understand, initially the chairman and board of these banks will be restructured to stabilize the banks. Already their creditworthiness has been reduced." He said that when the problem first arose in these banks, it was necessary to identify it quickly and bring it under restrictions. The central bank did not do that and kept them alive with money supply, the country has suffered a great loss. Now the responsibility of coming out of this difficult situation has fallen on the shoulders of the new government, he said. Journalists wanted to know what would be the effect if the banks are closed. ABB chairman said, “In Bangladesh, it was said that no bank was allowed to close. But in a market economy, if a bank goes bad, it should be allowed to close. Many banks have been mismanaged in the last 10 years. By letting them die naturally, people would know where to put their money safely.” He also said there are systemic problems in the country's banking sector. About 70 percent of the parliamentarians of the previous government were associated with business groups. As a result, they made all laws in their favour. Citing a former governor, Hussain said, “The entrepreneurs of the banking sector in the country are big businessmen. This (their involvement in politics as MPs) creates a major conflict of interest. These must be stopped now.”

Bangladesh Financial Intelligence Unit (BFIU) has ordered the freezing of bank accounts linked to several prominent individuals, including former State Minister for Power, Energy and Mineral Resources Nasrul Hamid and former Dhaka Metropolitan Police Joint Commissioner Biplob Kumar Sarkar. The action comes as part of an investigation into alleged money laundering and other financial irregularities. The freeze also extends to the bank accounts of Nasrul Hamid's family members, including his wife, Sima Hamid, son Zareef Hamid, and daughter Alifa Hamid. Similarly, the accounts of Biplob Kumar Sarkar’s wife have been seized. Former Chairman of the Bangladesh Security and Exchange Commission (BSEC), Prof. Shibli Rubayat Ul Islam, and his son Zuhair Sarar Islam are also among those affected. Additionally, the bank accounts of Sayedur Rahman, former president of the Bangladesh Merchant Bankers Association (BMBA), have been frozen. The crackdown further targets five individuals implicated in a share market scam, including Abul Khair, Javed A Matin, and Moniza Choudhury of asset management company CWT. This freeze covers both personal and business accounts, halting all transactions for the next 30 days, with the possibility of extending the suspension if required. The BFIU issued these directives on Tuesday, instructing banks and financial institutions to enforce the suspensions immediately.

Bangladesh Bank (BB) will not provide illegal liquidity support or any other facilities to any bank, including Sharia-based Islami banks. Governor Ahsan H. Mansur said this while speaking at a press conference at the boardroom of the central bank on Tuesday (August 20) on the latest situation in the banking sector. “Now if the depositors withdraw money from the bank occupied by S Alam, which is the result of their deeds. We have nothing to do. Because the depositors have the right to decide where to put their money,” he pointed out. The governor hoped that inflation would come down within 6/7 months. Monetary policy will not change much but will be tightened a bit. The currency market is going well now. The exchange rate of the US dollar went to Tk125 but now it has come down to Tk120/121 in kerb (open) market. Will action be taken against the irregularities in the banking sector? In a reply to such a query, the governor said that action would be taken against the irregularities of persons involved, but not against their institutions. Because there are many employment issues involved. Regarding taking over S Alam-owned banks and dissolving the board of other weak banks, Mansur said, taking action against weak banks or dissolving their board is under consideration. However, no decision will be taken hastily. Regarding non-performing loans, the governor said, “We want to go to international standards regarding NPL (non-performing loan). Traders have asked for some time to do this as export-import would be affected by this. The BB will discuss it with the IMF, but there is no doubt that we will go to action for NPL in with the international standards.” Regarding the instability of the government banks, the governor said that the instability of the state-owned Sonali and Palli Sanchay Banks is unfortunate. In response to a question, the governor said that the central bank has no decision to cancel Tk 1000 notes. Will Bangabandhu's picture removed and the note signed by the new governor come soon? In response to this question, Mansur said that when it is necessary to make notes in the mint, the notes will be printed and signed.

Finance Adviser Dr. Salehuddin Ahmed on Monday requested budgetary support from Japan during a meeting with Japanese Ambassador IWAMA Kiminori. The meeting, held at the Secretariat, underscored the longstanding partnership between Bangladesh and Japan, with a focus on expanding financial collaboration. “Japan has been a significant development partner for Bangladesh, primarily providing project support. This time, we sought budgetary support, and Japan has shown a positive attitude in this regard,” Dr. Salehuddin told reporters following the meeting. Employment generation takes priority over GDP growth: Planning Adviser Wahiduddin The Finance Adviser also expressed his condolences over the deaths of Japanese nationals in the 2016 Holey Artisan attack, acknowledging the deep ties between the two nations. Dr. Salehuddin emphasized the importance of continuing Japan-financed development projects in Bangladesh and discussed potential bilateral trade agreements aimed at boosting trade and commerce between the countries. He also requested an increase in scholarships for Bangladeshi students studying in Japan. Abdul Muyeed returning to Biman after 3 decades as Chairman In response, the Japanese Ambassador welcomed the new government, expressing confidence in its leadership capabilities. The ambassador also highlighted the need for Bangladesh to improve its business environment and implement reforms in the National Board of Revenue (NBR), as well as in various agencies, including the banking sector.

The Bangladesh Financial Intelligence Unit (BFIU) on Monday asked banks to freeze the accounts of Zahid Maleque, former health minister, and Mohammad Ali Sikdar, chairman of Computer World BD, along with their family members. Other persons are Zahid Maleque's son Ahad Maleque, daughter Sinthia Maleque, and Liakat Ali Sikder's wife Mahmuda Ali Sikdar. Besides, the BFIU also asked to freeze the bank accounts of Computer World BD. Mahmuda Ali Sikdar is also the company's chief executive officer. According to a circular from the agency, the BFIU has asked to freeze the bank accounts for the next 30 days in the initial phase. Sources said that the instruction came after the BFIU received reports of suspicious transactions in accounts under their names.