BB issues alert about Jubok's money laundering

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Siddique Islam
The central bank has issued alert to all commercial banks about Jubo Karmasangsthan Society (Jubok), so that it can not launder money by selling properties.
"The central bank has been informed of some moves by Jubok to siphon off money abroad by selling properties. We've taken the step as a precautionary measure to prevent it," a senior official of the Bangladesh Bank (BB) told the FE Wednesday.
The central bank has already issued a circular in this connection, asking all 47 commercial banks to take effective measures to prevent money laundering.
Earlier, on May 4 last year, the government formed a two-member commission, headed by former joint secretary Rafiqul Islam, for taking effective measures on different issues, including fixation of the amount, claimed by Jubok clients, within the next two years.
"We're now scrutinising the claims, raised by the clients, to fix the real amount of their deposit with Jubok," Rafiqul Islam told the FE Wednesday.
He also said the commission is now working to complete their tasks within the government-set timeframe.
Earlier, a probe report, prepared by a six-member committee in January 2010, recommended formation of a commission for long term -- at least for three years -- to return the depositors' money properly.
Jubok started its operation in 1994 by providing micro-credit to its members. Since its registration with the Registrar of Joint Stock Companies in 1997, it has set up more than 20 business outfits.
Jubok's shady activities came on the BB's radar in early 2006. In May 2006, the central bank served a notice on the organisation, asking it to explain within seven days why its activities, such as - collecting deposits and borrowing from common people on interest, should not be declared illegal.
On June 6, 2006 the central bank ordered Jubok to stop its illegal banking activities immediately. The BB had also directed it to pay back the depositors' money by December 31, 2006.