Bangladesh Bank has prepared data about letters of credit of five banks to help an anti-draft body investigation into suspected money laundering cases in the name of imports.

Anti-Corruption Commission (ACC) launched the enquiry in October last year and sought the data of a 10-month period from July 2012.

The anti-draft body began the probe as there was an “abnormal increase” of capital machinery imports when the country was experiencing dull investment situation due to a long-lasting political turmoil.

Bangladesh Bank sent a letter to the ACC on Tuesday citing that the data is ready and can be collected in hard version.

The banks include state-owned Agrani, Janata and Rupali, private commercial Islami Bank and foreign HSBC.

The central bank prepared data of five banks in the July-April period last fiscal year.

Bangladesh Bank sources said the LC opening for capital machinery imports increased 31.6% in 10 months from one year ago although the period was identified as politically instable and sluggish for investment sector.

In November last year, the committee asked the central bank for the data.

According to the data, LCs to import capital machinery increased to $2.36bn during the period compared to $1.72bn one year earlier.

In the period, textile machinery imports showed a substantial increase by 14% to $373m, garment machinery 34% to $366.65m and power sector machinery 301% to $696m.

Although the ACC asked for 10 months data, Bangladesh Bank found the December data of 2013 of two banks also fishy when the capital machinery imports witnessed 300% rise.

The banks are Janata Bank and Dhaka Bank.

Of the December data, the central bank found $230m LCs of Janata Bank and $18m of Dhaka Bank suspicious, which were opened for capital machinery imports for energy sector.

Bangladesh Bank asked the two banks to provide information to investigate into if there is any case of money laundering in the name of imports.

The central bank executives said the rise of capital machinery imports was not normal as the entrepreneurs had remained shy of making any fresh investment during political instability centering January 5 elections.

According to them, ill attempts were being made through over-invoicing.

They said although the imported machineries were second hand and cheap, they were shown new and expensive in the invoices.

News:Dhaka Tribune/30-Jan-2014

 Bank Asia Limited under its CSR programme handed over blankets to Bangladesh Bank to distribute among the cold-hit poor people in different parts of the country.

Md Arfan Ali, Deputy Managing Director of Bank Asia handed over the blankets to AFM Asaduzzaman, General Manager of Bangladesh Bank recently, said a press release.

 The Southeast Bank’s Brahmanbaria Branch has been shifted to Shikdar Plaza at Doctor Foridul Huda Road, Brahmanbaria Municipality, Brahmanbaria recently.

Md. Bashir Zillur Rahman, Assistant Vice President and Head of Brahmanbaria Branch inaugurated the newly-located branch, said a press release.

'Most of the big businessmen are the owners of the banks. So some profits go through the bench'

Bangladesh Bank has planned to encourage big industrial conglomerate to raise fund from the stock market to meet their investment needs.

The monetary policy statement announced yesterday said the central bank will continue to encourage big borrowers to access the capital market as banks will need to comply with the recently revised regulation on single borrower exposure limits for business groups.

“In order to fill the gaps in the financial landscape, BB intends to facilitate the role of private equity or venture capital sources of finance.”

Deputy Governor SK Sur Chowdhury said the central bank will ask the banks to take necessary measures so the big borrowers go to capital market for financing their projects.

Analysts appreciated the central bank move, but remained skeptical about implementation of the policy measure.

“It is a good move as financing to any business from the capital market is relatively lower than the banking sector. It will infuse dynamism in the capital market too,” said finance adviser to the last caretaker government Mirza Azizul Islam.

Big business people generally feel shy to go to the capital market, as it will ensure accountability and transparency of the business, he said. “Most of the big businessmen are the owners of the banks. So some profits go through the bench.”

But it will also affect in the profitability of the banks already sitting on huge idle fund, he added.

Recently, the central bank has tightened the single borrower exposure limit, saying if the rating of a credit risk grading turns out to be “marginal,” banks must not sanction the large loans.

If the big borrowers fail to provide sufficient collateral against the loans, they will fall into the “marginal” group on a scale of eight categories in credit risk assessment. Previously, the borrowers with insufficient collateral had qualified for such loans. 

 A meeting of the Shari’ah Supervisory Committee of Islami Bank Bangladesh Limited was held at Islami Bank Tower in Dhaka on Tuesday.

Mufti Sayeed Ahmad, Vice Chairman of the Committee and Head Mufti of Al Jamiatus Siddikiah Darul Ulum presided over the meeting, said a press release.