Bank account seizures should target only 10-12 oligarchs: Ex-BB governor Farashuddin
The economist warned against targeting family members of these oligarchs who are not dependent on them.
Former Bangladesh Bank governor Mohammed Farashuddin has remarked that bank account seizures should be used very selectively to maintain public trust, saying they should be confined to 10-12 identified money-laundering oligarchs.
Speaking at a seminar on 'Monthly Macroeconomic Insights' in Dhaka today (30 September), organised by the Policy Research Institute of Bangladesh (PRI) and the Department of Foreign Affairs and Trade (DFAT) of the Australian government, the economist warned against targeting family members of these oligarchs who are not dependent on them.
He said the fusion of political and economic power gives rise to oligarchs, adding that the interim government has identified 10 to 12 such individuals.
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"The government has experience in tracing money launderers, and the Bangladesh Bank, the National Board of Revenue and the Civil Aviation Authority [of Bangladesh] can carry out these actions within their capacities."
"We should encourage the government to act against money launderers," Farashuddin added.
Farashuddin also criticised a 1992 decision to allow scheduled banks to provide long-term loans, calling it a "suicidal decision". He said the capital market cannot develop as long as this policy remains in place.
On bank governance, he said directors are meant to formulate policies, yet Bangladesh is the only country where bank board members are directly involved in loan disbursement.
"We need to separate management from ownership in banks," he added.
