16 years of bank looting: Govt to take action against top officials of BB, 24 banks

The government is set to take punitive measures against the chairmen, directors, and managing directors (MDs) of 24 state-owned and private banks, along with top Bangladesh Bank officials, over massive irregularities, corruption, and looting during the 16-year Awami League rule.

On 19 August, the Financial Institutions Division under the finance ministry asked the Anti-Corruption Commission (ACC) to act, and the anti-graft body has already begun investigations, seeking details of their bank accounts and assets.

Of the 24 banks, six are state-owned: Sonali, Janata, Agrani, Rupali, BASIC, and Bangladesh Development Bank.

In the letter to the ACC chairman, the Financial Institutions Division sought action against the board chairmen, directors, and MDs of the state-owned banks who held office between 2009 and 2024. 

It also requested action against top officials from 18 private banks plagued by large-scale loan scams and irregularities.

In addition, it requested the ACC to act 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 ousted.

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

Officials from the Financial Institutions Division told TBS 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 were 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 were six banks under the S Alam Group's control, 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 2024 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 formed during the Awami League regime.

Speaking at a recent press briefing marking one year of the interim government, Finance Adviser 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."