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HC orders list of money launderers, loan defaulters

Rule issued on formation of banking commission


FE Desk | February 14, 2019 00:00:00


The High Court ordered on Wednesday the authorities concerned to prepare a list of loan defaulters and money launderers of the last 20 years and submit it to the court, report UNB and BSS.

The HC also issued a rule asking the authorities concerned to explain why an order should not be given to form a powerful commission to identify irregularities and corruption in the banking sector in the previous years.

The HC bench of Justice F R M Nazmul Ahsan and Justice K M Kamrul Kader came up with the order and rule after primary hearing on a writ petition filed by lawyer Manzill Morshed on behalf of the Human Rights and Peace for Bangladesh (HRPB) to stop irregularities and corruption in the banking sector.

Secretaries to Prime Minister's Office, Cabinet, Ministry of Finance, Bangladesh Bank Governor and chairmen and managing directors of all public and private banks were made respondents to the rule.

Lawyer Manzill Morshed stood for the writ petitioner and deputy attorney general Barrister A B M Abdullah Al Mahmud Bashar for the state.

During the hearing, the court said a vulnerable situation had already been created in the public and private banking sectors in the country. Necessary steps should be taken to stop all irregularities for reviving the economy and taking it to a strong position.

An FE Report adds: The statistics available with the Bangladesh Bank showed that the total amount of default loans, also termed classified loans, stood at Tk 993.70 billion at the end of September, 2018.

The volume of non-performing loans (NPLs) jumped by nearly 34 per cent or Tk 250.67 billion to Tk 993.70 billion as of September 30, from Tk 743.03 billion as of December 31, 2017.

The private think-tank Centre for Policy Dialogue (CPD), in a report in December last, mentioned that a total of Tk 225.02 billion had been plundered from the country's banking sector through major scams, irregularities and heists in the last one decade.

The think-tank also suggested forming a banking commission to review the overall situation of the country's banking sector.

On the other hand, an estimation of the Global Financial Integrity (GFI), a Washington-based research centre, showed that the annual average illicit outflow of capital from the country stood at $7.58 billion during the period of 2005-2014.

It also showed that in 2015, at least $5.90 billion had been illicitly-transferred from Bangladesh to advanced countries through misinvoicing in international trade.

Moreover, money laundering and capital flight also allegedly took place in the form of seeking permanent or long-term residency in other countries.

For instance, about 3,746 Bangladeshis availed the long-term residency in Malaysia under the Malaysia My Second Home (MM2H) programme during the period of January, 2002 and August, 2017.

Two years ago, the Anti-Corruption Commission (ACC) said that it had identified 1,050 Bangladeshi citizens who invested in Malaysia to build their second homes under the MM2H programme.

To avail the long-term residency in Malaysia under its MM2H programme, one needs to show liquid assets worth at least RM 500,000 (about Tk 1200 million) and offshore income of RM 10,000 (about Tk 0.26 million) per month.

UNB adds: Earlier, on January 23, a legal notice was served asking the authorities concerned to conduct an inquiry into irregularities in the banking sector of Bangladesh during the last 20 years.

The human rights body HRPB sent the notice asking the government to form a commission under Section 3 of the Commission Inquiry Act 1956 for the purpose of making inquiry into the various misappropriation of banking money and irregularities in case of loan sanctioning occurred during the last 20 years in different private and public banks.

The notice was served on the Bangladesh Bank governor, secretaries to the cabinet, Prime Minister's Office, Finance Division, Financial Institutions Division of the Ministry of Finance, and the Law Ministry asking them to form the commission within a week.

As, there was no reply to the notice, the writ was filed with the court.


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