The Bangladesh Bank is taking disciplinary measures against ten financial institutions for reportedly selling US dollars at inflated prices. The central bank sent letters to these banks on Tuesday, seeking explanations as to why they should not face penalties for their violations. The banks under scrutiny include a mix of local, foreign, and state-run entities, although their names have not been disclosed.
This crackdown by the central bank follows a probe initiated in July 2023 after allegations were made against 13 banks for selling dollars at elevated prices. The investigation resulted in evidence supporting the charges against ten of these banks. In response to these findings, Governor Abdur Rouf Talukder directed officials to enforce strict actions against any banks found guilty of such transgressions.
This is not the first time the Bangladesh Bank has taken action against financial institutions for similar violations. In August 2022, the heads of treasury divisions from six local and foreign banks were dismissed due to similar offenses. These banks included BRAC Bank, Citibank, Southeast Bank, and Standard Chartered (OTC:SCBFF) Bank.
However, due to legal constraints, the central bank could not take further action against these banks at that time. A month later, the heads of their treasury departments were allowed to resume their positions. This latest round of penalties demonstrates the Bangladesh Bank's ongoing commitment to maintaining regulatory compliance within its banking sector.
The punitive measures taken by the Bangladesh Bank are in accordance with an inquiry under the Bank Company Act. Central bank spokesperson Mezbaul Haque confirmed this enforcement action, emphasizing the importance of adherence to official directives in maintaining a stable financial sector.
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