Written by The Banking Post
Bangladesh Bank has issued strict instructions to all commercial banks to curb money laundering disguised as export transactions. The central bank warned that under-invoicing and over-invoicing—used to evade taxes and siphon off funds—pose serious risks to the national economy, and violators will face stern action.
Though measures had previously been taken to combat illicit outflows, the central bank stated that fresh directives were necessary to prevent future incidents.
The guidance was delivered during the Bankers’ Meeting held on Tuesday (8 July) at Bangladesh Bank—marking the first such gathering under the interim government. The session was chaired by Governor Dr. Ahsan H Mansur and attended by deputy governors, executive directors from various departments, and managing directors of all commercial banks.
To strengthen and stabilize the banking sector, the governor outlined multiple directives.
Speaking to reporters after the meeting, Syed Mahbubur Rahman, MD of Mutual Trust Bank, confirmed that banks failing to generate forced loans after LC settlements were cautioned. He said the central bank instructed all banks to immediately initiate forced loans upon settlement and take concrete steps to combat under-invoicing and money laundering.
Meanwhile, a white paper from the Economic Analysis Committee revealed that Bangladesh has lost an average of $16 billion annually to money laundering over the past 15 years—amounting to $240 billion, or roughly Tk 28.8 lakh crore at current exchange rates, during Prime Minister Sheikh Hasina’s tenure.
The meeting also addressed the formation of a relief fund for victims of the July uprising. Rahman said Bangladesh Bank will contribute from its own funds, and several other banks will participate. Executive Director and spokesperson Arif Hossain Khan confirmed the fund will be worth Tk 25 crore.
He added that the government is now encouraging public investment in treasury bills and bonds over savings certificates, due to higher interest rates, tax-free returns, liquidity flexibility, and no investment caps. One-year treasury bills currently offer an 11.60% interest rate, while long-term bonds offer up to 12.17%.
Despite raising deposit rates, many banks are still falling short of expected deposit inflows. The meeting also emphasized expanding digital banking, urging banks to ensure that customers can access services online or via mobile apps—reducing both time and cost.
The Bankers’ Meeting also revealed that banks currently allocate only 2–3% of their total lending to housing loans, with a maximum cap of Tk 2 crore per customer. Managing directors expressed the need to revise this outdated limit.
Governor Mansur confirmed plans to raise the ceiling and redesign loan structures so that customers can access housing finance based on individual needs and capacities. He also noted that the current Tk 10 lakh cap on credit card loans will be reconsidered in light of evolving consumer demands.
