The Bangladesh Bank has clarified that any individual or group facing allegations of money laundering abroad will be barred from returning to the board of directors of any bank in the country.
The clarification was provided on Tuesday by Arief Hossain Khan, Executive Director and spokesperson of the central bank, in response to confusion surrounding certain provisions of a recently introduced ordinance on banking sector reforms.
The statement follows concerns raised in sections of the media and among the public regarding whether individuals previously linked to financial irregularities—such as loan scams and money laundering—might be allowed to re-enter bank ownership or governance structures.
Addressing the issue, Arief said, “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 stressed that the ordinance does not offer an automatic or indiscriminate opportunity for such individuals to return. Instead, any provision allowing former directors or sponsor shareholders to regain ownership is subject to strict regulatory scrutiny and oversight.
Under the ordinance, former directors or sponsors may apply to recover ownership stakes by paying 7.5 per cent of their outstanding dues. However, the central bank made it clear that this provision is conditional and will not apply in cases involving serious allegations, particularly those related to financial crimes abroad.
Each application will undergo a comprehensive review process by the relevant regulatory authorities. This process will assess the applicant’s financial conduct, compliance history, and any involvement in irregular or unlawful activities.
The central bank reiterated that maintaining the integrity and stability of the banking sector remains a priority. It emphasised that individuals or groups facing allegations of money laundering abroad will not be eligible to hold positions on bank boards under any circumstances.
This clarification forms part of broader efforts by Bangladesh Bank to strengthen governance and enhance transparency within the banking system amid ongoing reform initiatives.
Key Provisions of the Ordinance
| Provision | Details |
|---|---|
| Ownership recovery | Permitted upon payment of 7.5% of outstanding dues |
| Eligibility condition | Subject to strict scrutiny and regulatory approval |
| Money laundering allegations | Individuals or groups barred from board positions |
| Regulatory oversight | Comprehensive review of financial and compliance history |
The central bank indicated that further clarifications may be issued if necessary as the reform process progresses.