TDS Desk:

The government is set to take punitive measures against the chairmen, directors, and managing directors (MDs) of 26 state-owned and private banks accused of massive irregularities, corruption, and looting during the 16-year tenure of the Awami League government.

As part of the process, the Anti-Corruption Commission (ACC) has begun investigations, including summoning information on their bank accounts and assets.

The Ministry of Finance’s Financial Institutions Division has also requested the ACC to take action against all Bangladesh Bank governors, deputy governors, and the heads of the Bangladesh Financial Intelligence Unit (BFIU) who served between 2009 and 5 August 2024 — the day the Hasina government was toppled.

In a letter to the ACC chairman on 19 August, the division sought action against the board chairmen, directors, and MDs of six state-owned banks—Sonali, Janata, Agrani, Rupali, BASIC, and Bangladesh Development Bank—who held office between 2009 and 2024. Alongside, the request also covered officials from 18 private banks plagued by large-scale loan scams and irregularities.

The ACC has already summoned bank account details of three former Bangladesh Bank governors—Dr Atiur Rahman, Dr Fazle Kabir, and Abdur Rouf Talukder—as well as six former deputy governors.

Officials from the Financial Institutions Division said the move is part of government reforms aimed at restoring discipline in the banking sector and preventing future large-scale corruption. They confirmed that all private banks that were recently restructured or are under merger plans are included in the probe.

Bangladesh’s banking sector witnessed some of the country’s worst financial scandals during the Awami League era, including the Hallmark loan scam, widespread embezzlement, and money laundering. BASIC Bank and Janata Bank collapsed due to massive loan defaults, while 18 private banks were also weakened by systemic irregularities. Among them are six banks under the S Alam Group, along with several others now struggling to return depositors’ money.

According to finance ministry sources, 15 private banks whose boards were restructured after 5 August are under scrutiny: 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.

In addition, investigations are also underway against officials of three other private banks—AB Bank, Padma Bank, and ICB Islamic Bank—whose boards were appointed during the Awami League regime.

Speaking at a recent press briefing marking one year of the interim government, Finance Adviser Dr Salehuddin Ahmed said, “Bank chairmen and directors colluded to embezzle and launder money. The chairman of a bank, who was once my student, admitted to me that 95% of that bank’s loans are defaulted—essentially, the owners and directors siphoned off nearly the entire amount.”