[🇧🇩] Corruption Watch

[Saif]

Awami League tenure: ACC probing 15yrs of financial irregularities

The Anti-Corruption Commission (ACC) has launched an investigation into alleged corruption by individuals, financial institutions, industrial groups, and loan defaulters during the Awami League’s 15-year tenure, which it claims led to the destruction of the country’s financial system.

www.thedailystar.net

Awami League tenure: ACC probing 15yrs of financial irregularities

The Anti-Corruption Commission (ACC) has launched an investigation into alleged corruption by individuals, financial institutions, industrial groups, and loan defaulters during the Awami League's 15-year tenure, which it claims led to the destruction of the country's financial system.

As part of this move, the commission is examining the role of former top officials of Bangladesh Bank, including three former governors and four former deputy governors, in major irregularities in the financial sector.

In a recent letter signed by ACC Deputy Director Mominul Islam, the commission sought information on various allegations of irregularities in the banking sector over the last 15 years.

"Several teams are working on financial irregularities. Once the investigation is complete, the assigned committee will submit its report. The findings will be disclosed in due time," ACC Director General (Prevention) and spokesperson Md Akhter Hossain told The Daily Star.

According to ACC sources, information has been sought regarding former BB governors Atiur Rahman, Fazle Kabir, and Abdur Rouf Talukder; former deputy governors SK Sur Chowdhury, SM Moniruzzaman, Abu Hena Mohammad Razee Hassan, and Abu Farah Mohammad Nasser; and former heads of the Bangladesh Financial Intelligence Unit Masud Biswas and Kazi Saidur Rahman.

These nine individuals held responsibilities at the central bank at different times during the past 15 years.

The ACC has also requested documents related to the approval of new banks during their tenure, all loan policies issued during that period, information on loan disbursements, money laundering, notices regarding US dollar disbursement from reserves to businesses, and copies of any internal investigation reports by BB concerning these matters.

Additionally, the ACC asked for policies issued since 2009 regarding the regularisation of default loans, and details of companies that benefited from these policies, including: Beximco Group, MR Group, Ratanpur Group, Keya Group, Jamuna Group, Thermax Group, Sikder Group, BBS Group, Abdul Monem Ltd, AnonTex Group, and others.

The commission has sought names of these companies and their owners, permanent and current addresses, loan amounts, and current loan statuses.

The ACC also demanded approval-related notices, documents, and circulars for nine banks approved after the AL came to power in 2009, namely: Meghna Bank, Midland Bank, Madhumati Bank, NRB Bank, NRB Commercial Bank, NRB Global Bank, South Bangla Agriculture and Commerce Bank, Union Bank, and The Farmers Bank, currently named Padma Bank.

In response to a letter from Salman F Rahman, the commission has also asked for the notice and documents related to the 2015 policy on loan restructuring; attested copies of policies issued after 2009 regarding bank inspections; and documents related to the formulation and issuance of those policies.

Furthermore, the ACC has sought attested copies of notices and circulars regarding the acquisition and ownership control of Islami Bank and Social Islami Bank.

If the central bank has conducted any internal investigations on these matters, the commission wants those reports as well.

Contacted, BB spokesperson Arif Hossain Khan said, "Recently, the ACC has issued several letters requesting various information. We are trying to provide all the required data to the best of our ability."​

 

[Saif]

Will corruption ever leave RAJUK?

Govt must ensure transparency and accountability in this institution

www.thedailystar.net

Will corruption ever leave RAJUK?
Govt must ensure transparency and accountability in this institution

VISUAL: STAR

We are quite disappointed to see RAJUK continuously failing to deliver its services in a transparent and accountable manner. Over the years, this organisation has earned a bad reputation for subjecting service-seekers to various forms of irregularities and unethical practices. While city dwellers had hoped that things would improve during the interim government's tenure, old practices have reportedly remained unchanged. From allotment letters and plot transfers to building design approvals and land-use clearances, irregularities persist across the board. While RAJUK is entrusted with the responsibility of restoring Dhaka's liveability, there have been no visible steps taken towards fulfilling that mandate. This state of affairs is unacceptable.

According to a report by Banik Barta, service-seekers face the greatest challenge while seeking land-use clearance and design approvals. Apparently, getting building designs approved is nearly impossible without paying hefty bribes. Landowners and developers claim it may take anywhere from Tk 5 lakh to upwards of a crore to get a design approved. To address such irregularities, RAJUK had launched the Electronic Construction Permitting System (ECPS) in 2022 but it remains non-functional, mostly because all processes continue through manual, desk-based dealings. Often, building designs submitted online through RAJUK-approved engineers are rejected without explanation. So applicants must visit RAJUK office in person, where they end up being compelled to pay bribes. RAJUK's inefficiency and irregularities are also reflected in its new Detailed Area Plan (DAP), which has drawn criticisms from experts.

We urge the government to eliminate corruption and bribery from RAJUK to ensure the smooth delivery of services to citizens. Currently, securing even a single service requires submitting numerous documents, many of which are unnecessary. This burdensome practice also must end. RAJUK should streamline all its services to alleviate public suffering.

In 2020, the Transparency International Bangladesh (TIB) recommended some critical reforms to curb corruption and promote accountability within the institution. These include amending outdated laws and regulations, transferring RAJUK's housing and real estate functions to a separate authority, dedicating RAJUK solely to planning and development, decentralising its services, and strengthening oversight, among others. We call on the government to seriously consider these recommendations and take decisive steps to transform RAJUK into a transparent, efficient, and citizen-friendly institution.​

 

[Saif]

ACC seeks details of ‘Mujib Year’ expenses

The Anti-Corruption Commission on Monday sent letters to all 64 districts across the country, seeking detailed financial records related to the nationwide observance of ‘Mujib Borsho’ or ‘Mujib Year’ on the occasion of birth centenary of the country’s founding president, Sheikh Mujibur Rahman...

www.newagebd.net

ACC seeks details of ‘Mujib Year’ expenses
Staff Correspondent 22 July, 2025, 00:07

The Anti-Corruption Commission on Monday sent letters to all 64 districts across the country, seeking detailed financial records related to the nationwide observance of ‘Mujib Borsho’ or ‘Mujib Year’ on the occasion of birth centenary of the country’s founding president, Sheikh Mujibur Rahman, and the construction of over 10,000 murals and sculptures during the period.

The Awami League government, which was ousted on August 5, 2024, in a mass uprising, allegedly misappropriated and wasted about Tk 4,000 crore on various events and installations, including the construction of murals and statues across the country, during the event.

The ‘Mujib Borsho’ celebrations took place from March 2020 to March 2022. Sheikh Hasina, daughter of the late Sheikh Mujibur Rahman, was in power then.

ACC director general (prevention) Akhtar Hossain said that the inquiry was initiated following allegations of misappropriation and waste — estimated at about Tk 4,000 crore – from the state treasury during the ‘Mujib Borsha’ celebrations.

The anti-graft agency in the letters sent to the DCs sought how much money had been used to celebrate the ‘Mujib Year’, the name of the ministry which spent the money, and the names of the officials involved in the expenses.

The funds were allegedly spent under projects associated with ousted prime minister Sheikh Hasina, her sister Sheikh Rehana, and others.

Earlier in January, a seven-member ACC team headed by a deputy director launched an inquiry into the allegations.​

 

[Saif]

Trade-based money laundering drains $16b a year for laxity

Bangladesh loses US$16 billion annually through trade-based money laundering alone for policy leniency and lax regulation of trading operations, reveals an official outfit's study and prescribes preventives. Despite having strong policy frameworks to help combat

thefinancialexpress.com.bd

Trade-based money laundering drains $16b a year for laxity

FE REPORT
Published :
Jul 22, 2025 23:53
Updated :
Jul 22, 2025 23:53

Bangladesh loses US$16 billion annually through trade-based money laundering alone for policy leniency and lax regulation of trading operations, reveals an official outfit's study and prescribes preventives.

Despite having strong policy frameworks to help combat trade-based money laundering (TBML), the country remains significantly exposed to illicit financial outflows due to their inadequate enforcement and systemic challenges, says the study report published Tuesday by the Bangladesh Institute of Bank Management (BIBM).

The report, titled 'Enforcement Status of the Standards to Prevent Trade-Based Money Laundering', which was presented at a roundtable at the BIBM office, says approximately 75 per cent of domestic money- laundering cases involve trade channels.

Deputy Governor of Bangladesh Bank and Chairman of the BIBM Executive Committee Nurun Nahar was present at the programme as chief guest with BIBM Director-General S. M. Abdul Hakim in the chair.

Professor (Selection Grade) of BIBM Dr. Shah Md. Ahsan Habib presented the keynote while a good number of top bankers and experts also attended the event.

Over the period of past 15 years from 2009 to 2023, Bangladesh had lost an estimated amount of $16 billion annually through TBML, mostly in the sectors like textiles, consumer goods and petroleum imports.

Such outflow of money is equivalent to 3.4 per cent of the country's GDP, surpassing even the annual public health budget.

While Bangladesh has aligned its policies with global anti-money laundering standards--including risk-based customer due diligence, price-verification protocols, and real-time monitoring tools -- the implementation of the measures across the financial and customs systems remains inconsistent and, in many cases, ineffective.

Based on a combination of secondary research and a primary survey of 37 commercial banks, the BIBM study found all banks having claimed to have some form of sanctions-screening-and trade-monitoring systems.

However, only half of surveyed banks subscribe the global price- verification tools such as Bloomberg or Global Trade Tracker, mainly due to cost constraints.

Similarly, 90 per cent of banks report having vessel-tracking mechanisms but many do not utilise internationally reputed services like Lloyd's or the International Maritime Bureau.

Besides, while customer-risk scoring is applied universally, only 45 per cent of the banks have implemented enhanced due-diligence policies tailored specifically to trade-based clients.

Many banks rely on manual assessments without uniform benchmarks, leading to discrepancies in risk grading and inconsistent application of controls, it says.

The absence of dedicated price-verification units in most public banks and the use of subjective judgment by trade officers further complicate their enforcement.

The report mentions that TBML is not explicitly listed as a predicate offence in the Money Laundering Prevention Act 2012, although the law does provide for the prosecution and confiscation of assets linked to illicit financial flows through trade.

Recent updates to the BFIU's guidelines and the universally recognised national goAML platform have improved the reporting of TBML-linked suspicious transactions, but the overall detection rate still remains low.

A key concern highlighted in the study is a lack of integration and coordination among regulatory bodies, including the Bangladesh Financial Intelligence Unit (BFIU), the National Board of Revenue (NBR), customs authorities, and commercial banks.

"The disjointed systems prevent real-time sharing of trade, shipment, and payment data--an essential component in tracking phantom shipments, circular trades, and mispriced invoices," says the study report.

The BIBM analysis also points out a weak compliance culture within the banking sector.

Many institutions treat TBML controls as a box-ticking exercise rather than a core component of operational risk management, it says, stressing a shift in institutional mindset, where board-level leadership takes ownership of AML responsibilities and invests in staff training, trade analytics, and audit processes.

Global best practices--from countries such as Singapore, Chile, Finland and Sri Lanka--illustrate how integrated trade-and-payment data systems, beneficial ownership transparency, and structured public-private cooperation can strengthen TBML enforcement.

Such examples also demonstrate that visible and proportionate penalties, combined with incentives for clean trade, enhance compliance across financial institutions.

The report adds closing Bangladesh's TBML-enforcement gap is not merely a regulatory obligation but a development necessity.

Without urgent action, the country risks continued revenue loss, distorted trade data, and potentially damaging consequences such as FATF grey-listing, higher correspondent banking costs, and reputational harm in global markets.

Among the key recommendations are establishment of a national Trade Transparency Unit (TTU), the publication of a public beneficial ownership register, expanded use of dynamic price-benchmarking tools, and formalised information-sharing arrangements with regional trading partners.

The study findings indicate that Bangladesh's vulnerability to TBML remains both a governance and competitiveness challenge.

As the country pursues export-led growth and seeks to preserve its foreign-exchange buffers, improved enforcement of anti-TBML standards will be critical to sustaining economic integrity.​

 

[Saif]

Trade-based money laundering

It is hardly surprising that the issue of money laundering continues to resurface, as it remains a stark and persistent reality the country is forced to confront without any foreseeable remedy. For long, there have been concerns raised from various quarters, and over time it seems as though this 'c

thefinancialexpress.com.bd

Trade-based money laundering

FE
Published :
Jul 25, 2025 00:10
Updated :
Jul 25, 2025 00:10

It is hardly surprising that the issue of money laundering continues to resurface, as it remains a stark and persistent reality the country is forced to confront without any foreseeable remedy. For long, there have been concerns raised from various quarters, and over time it seems as though this 'concern' is a cyclic expression of frustration and anger. The issue, because of its enormity and scale, has been receiving media focus for quite a while -- set off by rough estimates about the money flown off the country to so called tax heavens and overseas financial institutions. Lately, a government estimate has revealed that the country loses US$16 billion annually through trade-based money laundering alone primarily due to lax oversight of trading operations. The scale of this outflow is staggering. It accounts for around 3.4 per cent of the country's GDP, surpassing even the national budget for public health. The Bangladesh Institute of Bank Management (BIBM), in a study based on surveys across 37 commercial banks, reports that about 75 per cent of all domestic money laundering cases are linked to trade channels. The sectors most affected include textiles, consumer goods, and petroleum imports.

Despite policy alignment with global anti-money laundering (AML) standards --such as risk-based customer due diligence, price verification protocols, and real-time monitoring -- the actual implementation remains inconsistent. Although the banks surveyed claim to have sanctions-screening and trade-monitoring systems, only 50 per cent use global price verification tools like Bloomberg or Global Trade Tracker, often citing cost as a barrier. Similarly, 90 per cent of banks have vessel-tracking systems, but few rely on established platforms such as Lloyd's or the International Maritime Bureau. While most institutions apply customer risk scoring, only 45 per cent have enhanced due diligence frameworks tailored to trade-specific risks. Moreover, many public banks lack dedicated price verification units, leaving trade officers to rely on subjective judgment -- an approach that severely undermines oversight. The legal framework also poses challenges. Notably, the Money Laundering Prevention Act 2012 does not explicitly list TBML as a predicate offence, although it provides for prosecution and asset seizure linked to illicit trade-related flows. A critical gap lies in the lack of coordination between key regulatory bodies such as the Bangladesh Financial Intelligence Unit (BFIU), National Board of Revenue (NBR), customs authorities, and commercial banks. The absence of real-time data sharing on trade, shipments, and payments creates loopholes that are exploited through phantom shipments, circular trading, and invoice manipulation.

Global best practices provide a way forward. Countries like Singapore, Finland, and Sri Lanka have successfully implemented integrated trade and payment data systems, strengthened beneficial ownership transparency, and structured public-private collaboration. These measures, coupled with proportionate penalties and incentives for clean trade, have significantly improved compliance.

Addressing TBML is not merely a regulatory obligation but a development imperative. Without urgent action, Bangladesh risks continued revenue losses, distorted trade statistics, and damaging consequences such as Financial Action Task Force (FATF) grey-listing, higher correspondent banking costs, and reputational harm in global markets.​