Ex-Central Bank Governor’s Accounts Spark Controversy

Renewed concerns over financial transparency and regulatory accountability in Bangladesh’s banking sector have emerged following revelations concerning former Deputy Governor of the central bank, SM Moniruzzaman, and his personal bank accounts. A recent inspection report by the Bangladesh Financial Intelligence Unit (BFIU) disclosed an unusually high number of accounts and transactions under his name, raising questions about the nature and oversight of these financial activities.

According to the BFIU report, Moniruzzaman maintained a total of 159 accounts across 11 commercial banks. These accounts recorded cumulative transactions of approximately BDT 391 crore, while the combined balance at the time of inspection was around BDT 1.8 crore. The BFIU noted that such a concentration of savings and fixed deposit accounts, alongside frequent high-value deposits and withdrawals within a short span, is inconsistent with standard personal banking behaviour.

The transactions have been classified as “suspicious” and forwarded to the Anti-Corruption Commission (ACC) for further scrutiny. While the BFIU cannot initiate legal action independently, it is legally obliged to inform the relevant authorities if irregularities are detected.

The report highlights several notable transactions. In August 2021, Moniruzzaman opened a savings account at the Gulshan branch of Islami Bank Bangladesh Limited. Within two days, a pay order of BDT 2 crore was deposited through a company named S Alam Vegetable Oil. The following day, the same branch witnessed the opening of two fixed deposit accounts worth BDT 70 lakh each and one worth BDT 60 lakh. The sources and purposes of these funds were not adequately documented in the account records.

Additionally, regular inflows from another S Alam Group company, SS Power, amounting to BDT 1.63 crore over 27 months—categorised as “salary” and “vehicle maintenance allowance”—were also recorded. Documentation indicates that Moniruzzaman served as a commercial advisor to SS Power after retirement.

Further irregularities were noted in March 2023 at Prime Bank’s Gulshan branch, where multiple accounts and fixed deposits were opened on the same day, an action deemed atypical by investigators.

Moniruzzaman was appointed Deputy Governor of Bangladesh Bank in November 2016, with his term extended until his retirement on 31 December 2020. During his tenure, he oversaw the inspection division, a period coinciding with controversies involving Islami Bank’s oversight. He has defended himself, claiming that the BDT 2 crore deposit was proceeds from a property sale and that all accounts were fully declared in tax filings. He denied receiving any irregular benefits from S Alam Group, stating that the accounts’ portrayal was exaggerated.

The case has reignited debate over post-retirement appointments, large personal transactions, and the effectiveness of the nation’s banking supervision framework.

Summary of Suspicious Transactions