In a significant regulatory intervention aimed at reinforcing integrity across the financial system, the Bangladesh Financial Intelligence Unit (BFIU) has ordered senior officials of all scheduled banks to sign formal declarations pledging zero tolerance for corruption and money laundering. The directive, issued through a recent internal circular, reflects an intensified effort by authorities to address governance deficiencies and restore confidence in the banking sector.
Under the new requirement, chairmen, directors and managing directors must explicitly declare that they will neither participate in nor tolerate bribery, corruption or any form of financial misconduct. The BFIU has provided a standardised template for these declarations and instructed that the signed documents be displayed prominently in executives’ offices. This visibility is intended to strengthen accountability and serve as a constant reminder of ethical obligations at the highest levels of management.
The move comes at a time when the banking industry faces heightened scrutiny over weak corporate governance, poor credit discipline and gaps in risk management. A series of major loan fraud cases in recent years has exposed systemic weaknesses, leading regulators to adopt stricter oversight measures.
In addition to the general integrity pledge, bank leaders are required to submit separate declarations addressing the prevention of money laundering and fraudulent trade practices. Particular attention has been given to irregularities involving letters of credit, which have been identified as a recurring source of abuse. These declarations must also be displayed within office premises, reinforcing a culture of transparency.
Principal Compliance Obligations
| Requirement |
Description |
| Ethics declarations |
Senior bank officials must sign formal anti-corruption pledges |
| Public display |
Signed declarations must be visible in executive offices |
| Additional commitments |
Separate declarations on anti-money laundering and trade integrity |
| Applicability |
Mandatory for all current and future appointments |
| Reporting mechanisms |
Banks must provide secure channels for customer complaints |
The BFIU has also instructed banks to encourage customers to report any instances of bribery, corruption or harassment directly to the authority. To support this initiative, institutions must establish confidential reporting systems, including complaint boxes and QR code-based submission channels, ensuring the protection of whistleblowers.
Another key aspect of the directive is the tightening of lending oversight. Any approval of loans that falls outside policy guidelines, or is based on inadequate due diligence, will be treated as a punishable offence. The regulator has issued clear warnings against fraudulent lending practices involving forged documents, fictitious collateral or manipulated financial information.
Furthermore, the circular reiterates a strict zero-tolerance approach to money laundering, describing it as a serious threat to national economic stability. Suspicious transactions, undocumented trade activities, fabricated export bills and irregular letters of credit have been identified as high-risk areas requiring enhanced monitoring.
Through these measures, the BFIU aims to restore discipline, strengthen governance standards and rebuild public trust in the banking system. The directive signals a broader shift towards more proactive regulation, with a strong emphasis on transparency, accountability and long-term financial resilience.
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