[🇧🇩] Corruption Watch

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The Financial Express | First Financial Daily of Bangladesh

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Corporate financial sheets are hiding real sales data, says NBR chief

bdnews24.com

Published :
May 20, 2026 18:32
Updated :
May 20, 2026 18:32

National Revenue Board (NBR) Chairman Abdur Rahman Khan has launched a sharp critique of Bangladesh’s corporate sector, alleging that the true picture of annual sales and turnover is routinely obscured or distorted in audit reports and financial statements.

Describing this widespread manipulation as the single most critical "red flag" undermining national revenue collection, the NBR chief expressed deep frustration over the systemic lack of transparency.

Speaking at the Financial Accounting and Reporting (FAR) Summit at a Dhaka hotel on Wednesday, the NBR chief said inaccurate financial reporting has become a deep-rooted problem with serious consequences for the economy and the nation.

“I was asked what the biggest red flag or dangerous signal is in financial reporting and tax collection,” Abdur Rahman said.

“To me, the biggest problem in our financial reporting is that turnover or actual sales figures are not properly reflected in accounting statements.”

Calling the situation unimaginable in a civilised society, he said the reality in Bangladesh was starkly different.


“Cash transactions are either not shown in accounting at all, or they are not fully reflected.”

The summit was jointly organised by the Financial Reporting Council (FRC) Bangladesh, the Institute of Chartered Accountants of Bangladesh (ICAB), and the Institute of Cost and Management Accountants of Bangladesh (ICMAB).

The platform aimed to foster corporate governance and drive macroeconomic stability.

Corporate companies in Bangladesh conduct annual audits through professional accountants certified by ICAB and ICMAB, while the FRC oversees the quality of those audit reports.

However, allegations have long persisted that some professional accountants collude with companies to facilitate tax evasion through different irregularities.

Questions have also been raised over the FRC’s own capacity to effectively monitor and verify audit quality.

Over the years, media reports have exposed capital flight, money laundering and financial irregularities in banks and other financial institutions.

Yet only a fraction of those realities were reflected in professional financial reports, leaving many wondering whether the warning signs had been deliberately ignored.

Earlier at the summit’s opening session, Finance Advisor Amir Khosru Mahmud Chowdhury condemned such practices.

In the following session, the NBR chief referred to the interim government’s White Paper while explaining the country’s revenue crisis.

“We all know about the White Paper published by the interim government. We know what happened in our banking sector,” he said.

“One may even say fraudulent or false financial reports were prepared. Surely CFOs or accountants were involved in preparing those reports, and many of them are sitting in front of us today.”

His remarks carried an unmistakable sense of frustration and concern over the erosion of professional accountability.

“These are the realities, and everyone is suffering because of them. The entire nation is paying the price,” he said.

“Either we treated these issues too casually, or we failed to show the level of professionalism expected from us. The price the nation is paying for that failure is extremely high.”

Abdur Rahman said the government treasury was perhaps the first victim of such distorted reporting practices.

“We are not getting proper revenue because the financial reports being prepared, presented and audited are not reflecting the true picture,” he said.

He added that businesses operating honestly and in compliance with regulations were also suffering because of the trend, as unfair practices continue to distort the market and weaken trust in the financial system.​

 

[Saif]

Most default loans are wilful, strong laws can recover 60%

Private commercial banks need stronger legal backing rather than financial support in the next national budget to restore confidence in the banking sector and protect depositors, according to the Bangladesh Association of Banks (BAB).

www.thedailystar.net

Most default loans are wilful, strong laws can recover 60%

Abdul Hai Sarker, chairman of Bangladesh Association of Banks, seeks stringent legal measures in budget

Abdul Hai Sarker

Private commercial banks need stronger legal backing rather than financial support in the next national budget to restore confidence in the banking sector and protect depositors, according to the Bangladesh Association of Banks (BAB).

Around 90 percent of default loans are wilful defaults, and nearly 60 percent of those could be recovered through stricter legal measures, BAB Chairman Abdul Hai Sarker said in an interview with The Daily Star ahead of the national budget for fiscal year 2026-27.

Sarker, who is also chairman of Dhaka Bank and founder of Purbani Group, said weak laws and lengthy court procedures make loan recovery extremely difficult.

“In many cases, banks take months just to prepare cases and obtain court orders, while influential defaulters secure repeated delays or use political influence to stop asset seizures at the last moment,” he said.

At the end of 2025, default loans in the banking sector stood at Tk 5.45 lakh crore, Finance Minister Amir Khosru Mahmud Chowdhury told parliament in April. The amount is equivalent to nearly 69 percent of the original national budget for the current fiscal year.

The finance minister told the House that banks had been instructed to strengthen their legal departments and recover at least 1 percent of their defaulted loan balances in cash by June 30 this year.

In the interview, Sarker argued that banks could recover up to 60 percent of bad loans if laws were strengthened and properly enforced.

He said the new budget should introduce stricter legal provisions so that absconding defaulters cannot appoint representatives to fight cases in court while remaining abroad.

On Wednesday last week, BAB met the finance minister to discuss the upcoming budget. At the meeting too, the association stressed the need for faster legal recovery measures and stricter enforcement. Banking reform was also discussed.

According to Sarker, the current government has inherited multiple challenges and needs time to stabilise the economy.

He said the country’s economic condition can improve if the reforms proposed during the interim government are properly implemented through coordinated efforts.

Asked about the BNP-led government’s commitment to banking reforms, the BAB chairman said it is too early to judge as the administration has been in office for only around three months.

He described the situation as “wait and see” and said a clearer assessment can be made after at least six months.

Against this backdrop, Sarker said the government should adopt a realistic and manageable budget for FY27 given the country’s large fiscal deficit.

The size of the new budget is likely to be more than Tk 9 lakh crore, while revenue collection might reach Tk 6 lakh crore. The resulting Tk 3 lakh crore deficit would need to be financed either through foreign borrowing or borrowing from domestic banks.

Sarker said that excessive government borrowing from banks can place further pressure on the economy and the financial system.

Besides, he said the banking sector expects a more balanced corporate tax structure in the new budget.

Currently, banks face higher tax rates than many private and public companies, while neighbouring countries maintain comparatively lower corporate tax rates, he said.

He, however, added that given the government’s current revenue shortfall, an immediate tax cut may not be practical.

Instead, Bangladesh should focus on widening the tax net rather than increasing tax rates on existing taxpayers, he said.

Many registered companies and individuals still remain outside the tax system, according to Sarker.

He said the government could automatically identify potential taxpayers and improve tax collection by integrating services such as land registration, vehicle registration, utility bills, company registration and tax identification into a single digital platform.

The BAB chairman also emphasised building trust between taxpayers and tax authorities.

“Instead of imposing higher tax burdens on compliant taxpayers, the government should simplify tax procedures, recognise legitimate household and business expenses, and encourage voluntary compliance.”

According to him, cultural and administrative reforms in tax collection would raise revenue more effectively over the long term than repeatedly increasing tax rates.

Speaking further on taxation, he said many businesses and vehicle owners have TIN numbers or company registrations but still do not pay taxes. “The authorities should identify them, engage with them, and ask why they are not paying taxes.”

In the interview, the BAB chairman criticised the enactment of the Bank Resolution Act with debated changes, the merger of five troubled shariah-based banks, Bangladesh Bank’s loan rescheduling and restructuring facilities for large businesses, and the government’s factory reopening fund.

Sarker said Section 18(Ka) of the Bank Resolution Act allows former owners and directors of troubled or merged banks to regain control. According to him, the provision effectively rewards major loan defaulters and money launderers by allowing them easier repayment terms despite siphoning off large amounts of money abroad.

“How can former owners regain control by paying only 7.5 percent of the money? If these bank looters regain control of the banks, the sector will suffer further damage,” he said.

Sarker also said the opinion of BAB, as a stakeholder, was not sought before the law was approved.

The BAB chairman also criticised the interim government’s decision to merge five troubled banks. According to him, such major decisions should involve consultation with stakeholders.

“Before forcing mergers, the government should first stabilise troubled banks through financial support and confidence-building measures to protect public trust in the banking system,” he said.

On loan restructuring and rescheduling facilities, Sarker said banks know their customers best through KYC (Know Your Customer) practices, but the central bank imposed blanket facilities without considering borrowers’ backgrounds and repayment capacity.

The banking sector expects a more balanced corporate tax structure in the new budget. Currently, banks face higher tax rates than many private and public companies, while neighbouring countries maintain comparatively lower corporate tax rates. However, given the government’s current revenue shortfall, an immediate tax cut may not be practical
The Dhaka Bank chairman said those measures increased pressure on banks, weakened discipline and encouraged large defaulters.

Referring to the government’s Tk 60,000 crore stimulus package for the private sector, including Tk 20,000 crore earmarked for reopening closed factories, Sarker said financial support alone would not solve the problem.

“Factories shut down mainly because of weak demand, a lack of buyers, poor management or shortages of raw materials,” he said.

Before providing funds, the government should conduct proper investigations through committees involving private-sector representatives, the Bangladesh Bank and relevant ministries to determine whether a factory is commercially viable, he added.

Speaking about the banking sector more broadly, the Dhaka Bank chairman said coordination between the sector and the current leadership of the central bank has improved because policymakers now have stronger practical business knowledge.

Criticising the central bank leadership during the interim government, he said public comments about weak banks have damaged confidence in the financial sector.

In his view, a central bank governor should act as a careful manager rather than make statements that can create panic among depositors and investors.​

 

[Saif]

Black money legalisation plan would grant state-backed protection to corruption: TIB

Transparency International Bangladesh (TIB) has expressed strong concern over reports that the government is “actively considering” allowing undisclosed wealth to be legalised in the proposed 2026-27 budget through what it described as an unconditional amnesty that would prevent authori

thefinancialexpress.com.bd

Black money legalisation plan would grant state-backed protection to corruption: TIB

bdnews24.com

Published :
Jun 04, 2026 19:21
Updated :
Jun 04, 2026 19:21

Transparency International Bangladesh (TIB) has expressed strong concern over reports that the government is “actively considering” allowing undisclosed wealth to be legalised in the proposed 2026-27 budget through what it described as an unconditional amnesty that would prevent authorities from questioning the source of funds.

In a statement issued on Thursday, the anti-corruption watchdog said the proposed measure was unconstitutional, corruption-friendly and discriminatory, amounting to granting legal protection and impunity to corruption under state patronage.

According to media reports cited by TIB, the government is considering allowing black money to be whitened through a “general amnesty” without any opportunity for any authority to question the source of the funds.

TIB said providing such a corruption-enabling facility under the pretext of reviving the stagnant real estate sector, increasing industrial investment and accelerating economic growth would be “self-destructive” for the government.

The organisation said the move would effectively normalise corruption and irregularities through state patronage.

Demanding that such opportunities be permanently abolished, TIB also called for strict criteria to be followed if the government proceeds with a reported plan to facilitate the repatriation of money laundered abroad through a general amnesty.

In the statement, TIB Executive Director Iftikharuzzaman said successive governments since independence had continued provisions allowing the legalisation of “undisclosed income” in various forms, despite such measures being contrary to Article 20(2) of the Constitution.

“A new dimension was added during the previous authoritarian regime,” he said.

“Sometimes through ‘no questions asked’ provisions and sometimes through tax rates lower than regular rates, this unethical practice was institutionalised to encourage corrupt individuals.

“The same weak arguments about short-term financial gains and losses were used to justify retaining these discriminatory provisions.

“In reality, however, such measures have strengthened a culture of tax evasion and discouraged honest taxpayers earning lawful income.” he added.

Questioning the rationale behind the reported move, he said: “What message does a government elected with a strong public mandate and a commitment to taking a firm stance against corruption seek to convey by repeating this unethical and self-destructive practice?”

“In this regard, it is important for the government to sincerely evaluate public expectations and the country’s long-term welfare rather than prioritising the interests of opportunistic and vested groups.”

Referring to reports that the government is considering a general amnesty to encourage the return of funds held abroad by Bangladeshi citizens, he said such a plan could be acceptable if it formed part of a genuine effort to repatriate money from overseas.

However, he stressed that individuals involved in laundering illegally earned money must not be allowed to benefit from such a facility.

“Moreover, those already facing legal proceedings over money laundering must be brought under accountability, and the government must ensure that no form of general amnesty applies to them under any circumstances,” he said.

The National Board of Revenue (NBR) is reportedly considering allowing the disclosure of money exchanged outside the officially registered value of land transactions in the next fiscal year so that the government can collect tax on those funds at the standard rate.

Under the proposal, both buyers and sellers of land or flats would be required to declare such amounts in their income tax returns.

However, no agency would be permitted to question the source of the funds, according to the reported plan.​

 

[Saif]

Company to be formed to resolve bad loans: Mostaq

Bangladesh Bank governor said that a distressed asset management company would be formed to take over and resolve bad loans from banks...

www.newagebd.net

Company to be formed to resolve bad loans: Mostaq

BB governor meets newspaper editors

Staff Correspondent 09 June, 2026, 00:35

Bangladesh Bank governor Md Mostaqur Rahman addresses leaders of the Editors’ Council at the central bank headquarters in the capital on Monday. | Press release

Bangladesh Bank governor said that a distressed asset management company would be formed to take over and resolve bad loans from banks.

A Distressed Asset Management Company Act is being formulated to deal with the loans, he said.

Bangladesh Bank governor Md Mostaqur Rahman was addressing the leaders of the Editors’ Council at Bangladesh Bank headquarters on Monday.

The editors of the national dailies present at the meeting were Nurul Kabir, editor of New Age and president of the Editors’ Council; Dewan Hanif Mahmud, editor of Bonik Barta and general secretary of the council; Shamsul Haq Zahid, editor of The Financial Express; Matiur Rahman Chowdhury, editor of Manabzamin; Matiur Rahman, editor of Prothom Alo; AMM Bahauddin, editor of Inqilab; Shahed Muhammad Ali, editor of Samakal; and Mostafa Mamun, editor of Dainik Agamir Shomoy.

Bangladesh Bank’s deputy governors were also present.

The meeting covered several areas of ongoing work at Bangladesh Bank.

The governor briefed the editors on the central bank’s current reform activities in the banking sector, covering governance, management of weak banks, reduction of non-performing loans, digital transformation and financial stability.

On the merger of weak banks, the governor said the process is moving forward.

Some administrative and management changes have already taken place.

He said the restructuring process will gain further momentum once the Core Banking System — the central software infrastructure that banks use to manage their operations — of the concerned banks is upgraded and integrated.

On non-performing loans, the governor said amendments to the Money Loan Court Act are underway to ensure faster disposal of cases.

On the laundered money recovery, the governor informed the editors that assets worth $25 million have already been seized in the United Kingdom as part of a stolen asset recovery effort, and that these will be repatriated to Bangladesh shortly.

The governor said it is appropriate to keep the banking sector free from political influence.

He said the core objective of the current reform programme is to ensure professionalism, accountability and good governance in bank management and loan disbursement.

On digital transformation and financial inclusion, the governor said Bangladesh Bank is working to build an integrated digital financial ecosystem.

The members of the Editors’ Council offered various constructive views during the meeting.

Both sides expressed their commitment to continuing mutual cooperation for the development of the banking sector.​

 

[Saif]

The Financial Express | First Financial Daily of Bangladesh

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Govt tightens measures against loan defaulters, says finance minister

FE ONLINE REPORT

Published :
Jun 09, 2026 18:45
Updated :
Jun 09, 2026 18:45

Finance Minister Amir Khosru Mahmud Chowdhury on Tuesday said the government has intensified banking-sector reforms, strengthened deposit protection and tightened measures against loan defaulters in an effort to restore public confidence and improve financial stability.

Responding to a question from Cox’s Bazar-3 lawmaker Lutfur Rahman in the Jatiya Sangsad, the minister said the reforms are being implemented under a comprehensive bank-resolution framework established through the Bank Resolution Act 2026.

He said the framework was first introduced through the Bank Resolution Ordinance 2025 and operationalised under the Bank Resolution Scheme 2025 before being enacted into law this year.

As part of the resolution process, five troubled Islamic banks have been merged to form Sommilito Islami Bank PLC, a key step aimed at strengthening the banking system and addressing long-standing weaknesses in the sector.

The minister said depositor protection has also been expanded under the Deposit Protection Act 2026, with the maximum protected deposit amount doubled to Tk 200,000 from Tk 100,000.

In a significant policy shift, depositors of non-bank financial institutions (NBFIs), who were previously outside the safety net, have also been brought under the protection framework.

“A clear legal framework, transparent resolution mechanisms and stronger depositor safeguards will play an effective role in rebuilding confidence among depositors and stakeholders,” Mr Chowdhury told the House.

The finance minister said the government and Bangladesh Bank have simultaneously stepped up efforts to recover defaulted loans and curb the accumulation of non-performing loans (NPLs).

The measures include policy support for recovering overdue loans, special resolution strategies for banks burdened with high levels of classified loans and stricter action against wilful defaulters.

Banks have been instructed to strengthen their legal divisions and recover at least one per cent of outstanding defaulted loans in cash through alternative dispute resolution mechanisms by June 30, he said.

Bangladesh Bank has also updated credit-risk management guidelines, while the recovery progress of the top 20 defaulters is being reviewed regularly at bankers’ meetings.

Banks with classified loans exceeding 10 per cent of their portfolios have been directed to form dedicated recovery-monitoring teams.

To strengthen credit discipline, the central bank is implementing Expected Credit Loss (ECL)-based loan classification and provisioning under IFRS 9, a move aimed at improving governance and reducing lending risks.

The minister said licensed collateral valuation firms have also been authorised to independently assess pledged assets alongside banks’ own valuations.

Mr Chowdhury said the government’s broader reform agenda includes updating agricultural loan-rescheduling policies, publishing lists of defaulters and wilful defaulters, revising incentives for regular borrowers and setting sector-wide borrowing limits for individual clients.

Legal reforms are also being pursued to impose tougher penalties on habitual defaulters, he added.

The government is considering including experienced bankers on the jury board of the Artha Rin Adalat and introducing measures to prevent defaulters from delaying recovery proceedings through writ petitions.

The minister said large companies seeking financing above Tk 10 billion would be encouraged to raise funds through bond issuances instead of relying heavily on bank borrowing, helping ease pressure on the banking system.

He also disclosed that legislation is being prepared to facilitate the establishment of private-sector asset management companies (AMCs) to help resolve distressed assets and strengthen long-term financial-sector stability.​

 

[Saif]

Global price benchmarks adopted to curb fictitious invoicing

Government's revenue authority has moved to ensure accurate customs valuation by using internationally recognised price benchmarks to verify import prices and thus prevent duty-dodging through trade misdeclaration. Officials say the mechanism will be executed to prevent under-invoicing and o

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MOVE AGAINST DUTY-DODGING IN EXTERNAL TRADE
Global price benchmarks adopted to curb fictitious invoicing

Jasim Uddin

Published :
Jun 16, 2026 00:34
Updated :
Jun 16, 2026 00:34

Government's revenue authority has moved to ensure accurate customs valuation by using internationally recognised price benchmarks to verify import prices and thus prevent duty-dodging through trade misdeclaration.

Officials say the mechanism will be executed to prevent under-invoicing and over-invoicing of commodities while facilitating hassle-free legitimate trade.

The National Board of Revenue (NBR) has issued an order to this effect. Through this general order, issued on June 11, the revenue authority has directed customs officials to compare prices declared by importers with information available from globally recognised and independent price-reporting agencies, commodity exchanges and market-intelligence platforms.

According to the order, reference sources include S&P Global Platts, Independent Commodity Intelligence Services (ICIS), London Metal Exchange (LME), Shanghai Metals Market (SMM), Bloomberg and the International Sugar Organization (ISO).

Under the new framework, customs officials may accept the value declared by an importer as the transaction value if it is consistent with prices available from these international sources and there is no specific evidence indicating that the declared value differs from the actual price paid or payable.

The order, signed by Md Tariq Hassan, First Secretary (Customs Policy and ICT) at the NBR, was issued under Section 266 of the Customs Act 2023 and came into effect immediately.

Seeking anonymity, revenue officials say businesses have long complained that customs authorities often assess imported goods at higher value, resulting in increased duty payments.

"The move is intended to bring greater transparency and consistency to customs valuation and address concerns over misdeclaration of import prices--a practice often associated with duty evasion through under-invoicing and illicit capital transfers through over-invoicing," says one official.

The NBR says customs officials frequently face difficulties in determining the assessable value of imported goods, often leading to disputes and delays in the clearance process.

To reduce such complexities and support trade facilitation, the new guidelines provide a structured framework for incorporating international market data into customs valuation.

Officials also say the measure would benefit compliant businesses while tightening scrutiny of non-compliant ones.

According to the order, benchmark prices must be based on pro forma invoices issued within 90 days prior to the submission of the import declaration.

The directive also introduces "greater accountability" in customs assessments. If a customs official rejects a declared transaction value despite its consistency with internationally recognised price references, the decision must be backed by specific evidence and approved by an officer not below the rank of Assistant Commissioner of Customs.

The order further reiterates that where a minimum customs value has been prescribed through a government notification, imported goods cannot be assessed below that threshold.

"However, if an importer declares a value higher than either the international reference price or the notified minimum value, customs duties will be assessed on the higher declared value," the order reads.

Speaking to The Financial Express, Snehasish Barua, a chartered accountant and partner at SMAC Advisory Services Ltd, has said the adoption of a modern, data-driven valuation model would reduce "bureaucratic red tape and discretionary decision-making" in customs assessments.

"This approach aligns domestic customs valuation with prevailing international market prices, protecting compliant importers from unfair competition. A system-guided process will ensure greater uniformity in assessments and help reduce cargo-clearance time, improving Bangladesh's business environment," he says.

He adds that the use of real-time market data could help plug revenue leakages caused by under-invoicing, strengthen revenue collection and support the transformation of Bangladesh Customs into a more digital and efficient revenue administration.

"Ultimately, it will enhance Bangladesh's credibility in global trade and contribute to a more transparent import regime," he added.​

 

[Saif]

The Financial Express | First Financial Daily of Bangladesh

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Fraudsters gobble up Tk 926m in 2025
They are still active though BFIU, CID working to tackle financial crimes: BB official

SAJIBUR RAHMAN

Published :
Jun 16, 2026 10:26
Updated :
Jun 16, 2026 10:26

Bangladesh's payment ecosystem suffered losses amounting to Tk 926.01 million due to fraudulent practices in 2025, with mobile financial services (MFS) accounting for the major part of it.

Such a significant volume of fraud-related losses highlights the persistent vulnerabilities in the country's fast-growing digital finance sector, according to insiders.

According to Bangladesh Bank (BB) data, a total of 81,423 fraud cases were reported across mobile financial services (MFS), cheque-based instruments and card transactions during the year.

Of the total fraud amount, Tk 827.21 million remained unrecovered, leaving an overall recovery rate of only 10.7 per cent.

The central bank data show stark variances in fraud patterns across payment channels.

While MFS fraud was widespread and difficult to recover, cheque fraud occurred infrequently but involved large amounts per incident. Card fraud, meanwhile, remained comparatively contained and showed signs of improvement during the year.

MFS emerged as the most vulnerable segment, accounting for about 88 per cent of the total fraud value recorded in the payment ecosystem.

The sector experienced fraud worth Tk 813.26 million in 2025, of which Tk 742.56 million remained unrecovered. The recovery rate stood at only 8.7 per cent, According to available data.

The number of fraud cases rose from 16,230 in the January-March quarter to a peak of 18,623 in April-June before gradually declining toward the end of the year. Fraud values followed a similar trend, reaching Tk 219.87 million in the second quarter.

Industry observers said the low recovery rate reflects the speed with fraudsters moving stolen funds through multiple accounts and intermediary wallets before victims or service providers can take action.

Although cheque-related fraud represented only a small share of total cases, it remained a significant source of financial risk because of the high value involved in each incident.

A total of 30 cheque fraud cases involving Tk 85.53 million were reported during 2025.

The average loss per incident amounted to nearly Tk 2.85 million, underscoring the high-value nature of cheque-related fraud.

Unlike MFS fraud, cheque frauds demonstrated strong recovery outcomes with financial institutions managing to recover about 81 per cent of the affected funds, making it the most recoverable fraud category among the three payment channels.

The first quarter recorded the highest cheque frauds valued at Tk 36.59 million, largely due to a handful of major corporate cheque misuse incidents.

Banking officials attribute most of the cheque fraud cases to forged instruments, documentation irregularities and weaknesses in internal control mechanisms.

Although cheque fraud does not currently pose a systemic threat, people familiar with the development warn that it would require continued monitoring because a small number of incidents can generate substantial financial losses.

They recommend strengthening branch-level verification processes, introducing image-based cheque analytics and reinforcing dual-control mechanisms to reduce operational and insider risks.

On the other hand, card fraud followed a markedly different trend during the year as the segment witnessed its highest level of fraud in the first quarter, when 3,740 cases involving Tk 26.5 million were reported.

Both the number and value of fraud incidents then fell sharply in subsequent quarters.

Fraud cases dropped to 1,717 in the following quarter, while losses fell to less than Tk 0.7 million. Although fraud activity increased modestly later in the year, it remained far below the levels recorded at the beginning of 2025.

Such a sharp decline suggests that stronger fraud-monitoring systems, stricter one-time-password (OTP) enforcement and improved merchant controls have helped curb fraudulent activities.

Card fraud achieved a recovery rate of about 47 per cent, significantly higher than that of MFS but lower than cheque fraud.

While card fraud remains operationally manageable, experts believe continued vigilance is necessary, particularly as e-commerce and cross-border digital transactions continue to expand.

Arif Hossain Khan, Executive Director of Bangladesh Bank, acknowledged the rise in payment-related fraud but said the central bank is intensifying its oversight efforts.

"Our Payment Systems Supervision Department remains actively engaged in monitoring the sector and conducts regular sample-based inspections," he said.

He warned that Mobile Financial Services (MFS) providers stand to suffer the most if they fail to curb such fraud.

"If MFS operators cannot reduce fraud incidents, they will be the biggest losers because their reputation and customer trust will be severely affected," he said.

Khan said relevant agencies, including the Bangladesh Financial Intelligence Unit (BFIU) and the Criminal Investigation Department (CID), are also working closely to tackle financial crimes.

"We are making every effort, but some criminals still remain active in society," Mr Khan said.

He also emphasised that fraud cases remain relatively low compared to the overall volume of digital transactions.

Fahim Mashroor, the founder of BDJobs, recently raised serious concerns over the security and growing vulnerabilities in the financial sector.

Mentioning that there has been a massive influx of fake Mobile Financial Services (MFS) accounts and fake SIM cards in the market, he warned that the recent withdrawal of taxes on SIM cards would compound the issue.

He criticised the central bank for its failure to penalise non-compliant MFS providers and banks.

Local financial institutions currently operate without any fear of accountability, he noted.

Mashroor emphasised that both MFS providers and banks need to adopt state-of-the-art technology to check financial fraud.​