Financial Regulatory Body Pursues Financial Information of Three Former Governors and Six Previous Deputy Governors from Banks
The Anti-Corruption Commission (ACC) in Bangladesh has launched an investigation into allegations of corruption and mismanagement in the country's banking sector. The investigation has uncovered a series of troubling allegations against three former governors and six former deputy governors of the Bangladesh Bank.
The former governors under scrutiny served during the 15-and-a-half-year tenure of the Awami League regime. Among them, Dr Atiur Rahman, Fazle Kabir, and Abdur Rouf Talukder are the focus of the investigation.
Dr Atiur Rahman, who served as governor from 2009 to 2016, is linked to the Hall-Mark and BASIC Bank loan scams due to weak regulatory oversight. He is also accused of being a "mastermind" behind the cover-up of the 2016 Bangladesh Bank reserve heist.
Fazle Kabir, governor from 2016 to 2022, approved the controversial takeover of Islami Bank Bangladesh and Social Islami Bank by the S Alam Group. He is alleged to have relaxed loan policies to conceal default loans, kept interest rates artificially low, and introduced methods for loan defaulters to get off with minimal payments.
Abdur Rouf Talukder, governor from 2022 until August last year, is accused of continuing fraudulent loan practices, failing to address irregularities, and issuing policies favorable to loan defaulters. He allegedly authorized printing new money to supply funds to S Alam Group-owned banks.
The allegations against the deputy governors include Sitangshu Kumar Sur Chowdhury, currently in jail in a corruption case, who is among the six former deputy governors under investigation. He is accused of amassing wealth beyond his known sources of income.
SM Moniruzzaman is accused of halting bank inspections during his tenure. Abu Hena Mohammad Razee Hasan, former chief of the Bangladesh Financial Intelligence Unit (BFIU), allegedly failed to act against money laundering cases while in office. Kazi Saidur Rahman is blamed for causing turmoil in the foreign currency market. Abu Farah Mohammad Naser is accused of severely crippling the banking sector through excessively relaxed loan policies.
The BFIU has directed all banks to provide detailed account information of these former governors and deputy governors. This includes account opening forms, transaction records, Know Your Customer (KYC) documents, and all related details. If any accounts have been closed, the banks are required to provide information about them as well.
The directive comes following a request from the Anti-Corruption Commission (ACC) as part of the investigation into allegations of corruption and mismanagement in the banking sector. The BFIU has instructed banks to submit the required information within three working days.
The investigation into the former governors and deputy governors of the Bangladesh Bank is ongoing, and it remains to be seen what further revelations will come to light. However, the allegations so far suggest a systemic weakening of the banking sector during their tenures.
Business and politics intermingle in the ongoing investigation by the Anti-Corruption Commission (ACC) in Bangladesh, as allegations of corruption and mismanagement in the country's banking sector surface. The inquiry has targeted several former governors and deputy governors of the Bangladesh Bank, including Dr Atiur Rahman, Fazle Kabir, and Abdur Rouf Talukder, who allegedly practiced financial misconduct or overlooked general-news worthy incidents, such as loan scams, cover-ups, and relaxed loan policies, during their tenures.
