BSEC freezes 617 BO accounts over misconduct
Highlights:
- 357 accounts frozen at the request of BFIU, ACC, and court orders
- 109 accounts frozen under BSEC's enforcement actions
- 6 accounts linked to owners of asset management firms frozen
- 18 accounts frozen due to fund deficits in CCAS
The Bangladesh Securities and Exchange Commission (BSEC) has frozen 617 beneficiary owner (BO) accounts due to misconduct and non-compliance in the capital market.
Speaking to TBS, BSEC spokesperson Abul Kalam said the accounts were frozen based on court orders and requests from other government agencies in response to various types of capital market misconduct.
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In addition, some accounts were frozen as part of the commission's disciplinary actions following internal investigations, he added.
According to commission sources, most of the accounts were frozen after the fall of the Awami League government in August last year.
Among those affected are 33 influential individuals linked to the previous administration. A total of 127 accounts were opened under the names of their family members, relatives, or associated businesses. These accounts are among the 617 that have been frozen.
Besides, 357 accounts were blocked at the request of the Bangladesh Financial Intelligence Unit (BFIU), the Anti-Corruption Commission (ACC), and based on court orders.
Another 109 accounts were frozen under BSEC's own enforcement actions, primarily due to share manipulation.
Additionally, six accounts belonging to owners, directors, and CEOs of asset management companies were frozen following recommendations from a BSEC-formed investigation committee.
Furthermore, 18 accounts of owners and directors of several brokerage houses were frozen due to the misuse of investors' funds held in Consolidated Customers' Accounts (CCAs).
Each brokerage house is required to maintain a CCA to store unused investor funds, which may only be used for share transactions on behalf of clients.
However, some brokerage owners diverted these funds for other purposes, resulting in fund deficits and triggering regulatory action.
