‘No returning as bank director if allegations found of money laundering’

Bangladesh Bank has clearly stated that no person or group can return to the bank board if there are allegations of money laundering abroad.

Central bank spokesperson and executive director Arif Hossain Khan gave this information to the media on Thursday.

The central bank says that this explanation has been given to resolve the confusion that has arisen in the public mind about some sections of the recent ordinance on banking sector reforms.

This position has been clarified in response to a question about whether there has been an opportunity for rehabilitation of people accused of irregularities, loan fraud and money laundering in the past.

Khan said that the way information has been presented in the media about some sections of the recent ordinance on banking sector reforms has given rise to various questions in the public mind.

In particular, there has been a fear that whether there has been an opportunity for controversial individuals or groups accused of irregularities, loan fraud and money laundering in the past to return to ownership or management of banks.

He explained that according to the conditions mentioned in the ordinance, directors or sponsors who were involved with a bank in the past can get the opportunity to return to ownership by paying a certain amount of money (12.5 per cent).

However, this is by no means an automatic or arbitrary opportunity. Rather, the entire process will be completed through strict scrutiny and monitoring by the regulatory agency.

Arif Hossain Khan said that if someone wants to return to the bank’s board, Bangladesh Bank will first collect information from various agencies about the allegations against the person concerned.

In particular, a report on money laundering or suspicious transactions will be sought from the Bangladesh Financial Intelligence Unit (BFIU).

If there is an allegation of money laundering against a person, it must be ensured that he is legally or institutionally cleared of that allegation.

He also said that just being cleared of the allegations is not enough. The financial behavior of the person or institution concerned, especially the history of taking and repaying loans, will also be examined.

In this case, if there is a large amount of defaulted debt, it will have to be adjusted or settled according to the rules. Otherwise, it will be difficult for them to get the opportunity to be rehabilitated.

The Bangladesh Bank official clarified that if the concerned individual or group can be completely freed from the allegations that have come to light in the past—such as taking loans anonymously, misusing those loans, laundering money abroad, and not returning the money to the bank—through normal legal processes and repaying their financial obligations, then the regulator should not have any objection to their re-participation in the banking sector.

However, he emphasized that there is no scope for giving any kind of concession or special privileges in this process.

Each application will be considered based on strict scrutiny, data analysis, and recommendations of the relevant organizations.

As a result, no decision will be taken that would put the banking sector at risk again.