Dhaka: Bangladesh Bank (BB) Governor Dr. Ahsan H Mansur announced plans to decrease ‘regulatory overreach’ by allowing banks more operational freedom, provided they comply with existing rules and guidelines. The statement was made during a roundtable on ‘Banking Sector Reforms,’ organized by Mutual Trust Bank PLC and The Financial Express at a city hotel.
According to United News of Bangladesh, the central bank has opted for a direct action approach by forming three task forces dedicated to banking sector reform, Bangladesh Bank reform, and asset recovery. This move aims to expedite reforms and avoid the lengthy process of establishing a banking commission, which Dr. Mansur stated would take at least nine months for report preparation and review.
Addressing the challenges of recovering laundered money, Dr. Mansur revealed the formation of a Joint Investigation Team (JIT) that includes the Criminal Investigation Department (CID), Bangladesh Financial Intelligence Unit (BFIU), and the Anti-Corruption Commission (ACC). Recognizing capacity building as a significant challenge, he noted technical assistance from international partners, including the World Bank, British government, FBI, and the European Union.
The Governor discussed the long-term goal of establishing a permanent mechanism akin to the United Kingdom’s National Crime Agency (NCA) to continuously combat financial crimes. Authorities have identified 12 to 13 major individuals and around 200 others allegedly involved in laundering over Tk 200 crore each. Dr. Mansur expressed optimism about ongoing legal proceedings, citing the asset recovery case involving Saifuzzaman in London and Islami Bank’s claim.
Emphasizing political neutrality, Dr. Mansur assured that the central bank aims to keep the economy functional without bias, unlike the ‘1/11’ caretaker government period. He mentioned that letters of credit were permitted for S Alam Group’s SS Power plant due to its $2.5 billion investment, crucial for the country’s power supply, and similar facilities were extended to Gazi Group and Beximco.
Regarding Beximco, he clarified that while the textile division faces challenges, other units like pharmaceuticals and Shinepukur Ceramics continue to operate. An exit roadmap has been developed with business representatives, allowing affected industries five to 12 years to regularize liabilities.
The Governor stressed the urgency of passing key financial laws under the current administration, warning that future governments might find it extremely difficult to enact them. He expressed concerns over the Money Loan Court Act amendment being returned for being perceived as anti-business, arguing the necessity of the amendment for asset recovery. Dr. Mansur also highlighted the importance of amending the Bank Company Act to strengthen governance in the banking sector.