Islami Bank Bangladesh Ltd has recently appointed a legal consultancy firm in the US to help the bank clear its name from the US Senate report on money laundering and terrorist financing, officials of the bank said.
The Washington-based firm, Dana Contratto and Associates,

was hired by Bangladesh’s top shariah-based bank at a cost of $25,000 per month (nearly Tk 20 lakh) under an initial contract of six months.

“The firm will help us reach our explanation to the US Senate committee that came up with the report last year,” Managing Director of the bank MA Mannan said.

In the report on HSBC’s money laundering lapses, Islami Bank, along with Social Islami Bank of Bangladesh, was accused of having links with terrorist organisations.

The report is the result of an investigation on London-based HSBC Holdings PLC by the Senate Permanent Subcommittee on Investigations.

The report also said HSBC’s US division provided banking services to some banks in Bangladesh who were reportedly involved in helping terrorist outfit al-Qaeda in fund raising.
Later, the US authorities fined HSBC a record $1.92 billion.

“Earlier, we had tried to clear our position before the US Senate subcommittee. But we could not reach them,” said Mahbub ul Alam, deputy managing director (international banking wing) of Islami Bank.

Alam said they are now confident the consultant will be able to convince the committee that the Bangladeshi bank was not involved in any sorts of money laundering or terrorist financing.

Another official of the bank said they have been facing troubles in international business as the report mentioned its name as HSBC’s “Serving other banks with suspected links to terrorism.”