The Bangladesh Bank has reaffirmed that individuals or groups facing allegations of money laundering abroad will be prohibited from returning to the boards of banks in Bangladesh.
The clarification was provided on Tuesday by Arief Hossain Khan, Executive Director and spokesperson of the central bank, following public confusion over provisions in a recently issued ordinance designed to reform the banking sector.
The statement comes amid concerns expressed in sections of the media and by the public regarding whether controversial figures previously associated with financial misconduct—such as loan scams, irregularities, and money laundering—could regain positions in bank ownership or management.
Addressing these concerns, Arief stated, “The information presented in some media outlets regarding the recent reform ordinance has sparked various questions. There are fears that individuals or groups involved in past irregularities might find a way back into bank ownership or management.”
He explained that the ordinance does not grant an automatic or unrestricted opportunity for reinstatement. While it allows former directors or sponsor shareholders to apply for the recovery of ownership stakes, such provisions are conditional and subject to stringent regulatory checks.
Under the ordinance, former directors or sponsors may seek to reclaim ownership by paying 7.5 per cent of their outstanding dues. However, the central bank emphasised that this measure is not universally applicable and will be implemented only after careful evaluation.
Each application will undergo a comprehensive review process conducted by the relevant authorities. This review will examine the applicant’s financial conduct, regulatory compliance, and any involvement in unlawful or irregular activities. Allegations of money laundering abroad will disqualify individuals from serving on bank boards.
The central bank reiterated that maintaining the integrity, stability, and credibility of the banking system remains a priority. Preventing individuals linked to serious financial misconduct from influencing bank governance is a key component of the ongoing reform efforts.
The clarification forms part of broader initiatives undertaken by Bangladesh Bank to strengthen oversight, enhance accountability, and restore public confidence in the banking sector.
Key Elements of the Ordinance
| Provision |
Details |
| Ownership recovery |
Allowed upon payment of 7.5% of outstanding dues |
| Eligibility |
Subject to strict regulatory scrutiny |
| Disqualification |
Allegations of money laundering abroad |
| Review process |
Case-by-case assessment of financial and compliance records |
The central bank indicated that further clarifications may be issued, if necessary, as reforms continue to be implemented.
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