The Anti-Corruption Commission in Bangladesh has launched an investigation into ex-banker Chowdhury Nafeez Sarafat for allegedly embezzling Tk 800 crore from Padma Bank (formerly Farmers Bank). Sarafat allegedly took control of the bank with help from intelligence and police officials. The bank, which faced previous irregularities totaling Tk 3,500 crore, was partially rescued by state enterprises. Sarafat resigned in January, and the bank agreed to merge with another in March. the daily star
Eight private banks in Bangladesh engaged in risky reciprocal lending practices, with directors borrowing heavily from each other’s banks. The total loans amounted to Tk 45,000 crore, including Tk 20,000 crore to relatives of bank directors. These practices, which intensified over the past five years, raise concerns about financial stability and regulatory oversight. The banks involved are linked to powerful business groups that thrived during the previous government’s tenure, potentially exposing the financial sector to serious risks. the daily star
Two prominent businessmen, Salman F Rahman and Saiful Alam Masud, allegedly looted about Tk82,000 crore from various banks during the ousted government’s tenure. Rahman, now arrested, owes Tk36,865 crore to seven banks through his companies. Masud’s S Alam Group borrowed Tk45,000 crore from Islami Bank. The National Board of Revenue is investigating S Alam’s family accounts. New Bangladesh Bank governor Dr Ahsan H Mansur has vowed to tackle money laundering and retrieve stolen funds. dhaka tribune
Salman F Rahman, former adviser to Sheikh Hasina, allegedly used his influence to secure bank loans for various companies, including Globe Janakantha Shilpa Paribar (GJSP). Documents reveal he recommended a Tk 250 crore loan for GJSP from Janata Bank in 2020. Rahman, now in police custody over unrelated charges, was known for his significant influence in Bangladesh’s financial sector during Hasina’s 15-year regime. The current administration has not yet charged him with financial misconduct. the daily star