In an effort to address widespread irregularities, corruption, and plunder, the government is going to take punitive action against officials who served during the past 15 years.
These officials include governors, deputy governors, and the head of the Bangladesh Financial Intelligence Unit (BFIU) at Bangladesh Bank, along with the chairmen, directors, and managing directors (MDs) of 24 state-owned and private banks.
The Anti-Corruption Commission (ACC) has already initiated investigations as part of this effort. The ACC has requested financial records and asset information from those involved.
Recently, the Financial Institutions Division of the Ministry of Finance sent a letter to the ACC Chairman, requesting action against all Bangladesh Bank governors, deputy governors, and BFIU heads who served between 2009 and August 5, 2024. The letter was sent on the same day the Awami League government was overthrown. The letter also called for action against the chairmen, directors, and MDs of six state-owned banks: Sonali, Janata, Agrani, Rupali, Basic, and Bangladesh Development Bank.
Additionally, investigations are underway into 18 private banks involved in major loan scams and irregularities. The ACC has already requested bank account details for three former Bangladesh Bank governors—Dr. Atiur Rahman, Dr. Fazle Kabir, and Abdur Rouf Talukder—and six former deputy governors.
According to Ministry of Finance officials, these actions are being taken to restore discipline in the banking sector and prevent large-scale corruption in the future.
During the Awami League government's tenure, the country's banking sector faced a series of major scandals, including the Hallmark loan scam, the collapse of Basic Bank and Janata Bank, and significant money laundering incidents.
Corruption against MDs, Chairmen of private banks being investigated
Eighteen private banks have also been weakened by irregularities. Several of these, including six under the S. Alam Group, are struggling to repay depositors.
The boards of the following private banks were reconstituted after August 5: Islami Bank, Social Islami Bank (SIBL), IFIC Bank, UCB, EXIM Bank, First Security Islami Bank, Al-Arafah Islami Bank, Global Islami Bank, Union Bank, National Bank, NRB Bank, NRB Commercial Bank (NRBC), Meghna Bank, Bangladesh Commerce Bank Limited (BCBL), and Premier Bank.
Additionally, three more banks whose boards were appointed during the Awami League government's term—AB Bank, Padma Bank, and ICB Islami Bank—are also under investigation.
At a press conference marking the one-year anniversary of the interim government, Finance Advisor Dr. Salehuddin Ahmed stated that "bank chairmen and directors worked together to loot money." He recounted that one bank chairman, a former student of his, confessed that 95% of their bank's loans were non-performing, meaning the owners and directors had siphoned off almost all the money.
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