BB swaps Islami Bank, ICB observers
Jebun Nesa Alo

Islami bank now under regulatory scanner after allegations of terrorist financing

Bangladesh Bank has exchanged observers between ICB Islamic Bank Ltd and Islami Bank Bangladesh Ltd.

The decision on exchange was taken at a meeting held on Tuesday with Governor Dr Atiur Rahman in the chair.

Recently, Bangladesh Bank has increased surveillance on financial activities of Islami Bank after allegations of militancy financing.

The central bank however has found no clue yet regarding such financing, said the central bank officials.

According to the decision, Shafiqul Islam, general manager of Bangladesh Bank’s foreign exchange operation department, has been shifted to the Islami Bank as observer.

Shafiqul Islam was serving as the regulator’s observer in ICB Islamic Bank.

On the other hand Kazi Sayedur Rahman, general manager of foreign exchange and treasury management department of central bank, has been placed at the ICB Islami Bank as observer. He was working as observer in the Islami Bank.

Bangladesh Bank sent a letter to both of banks in this respect, said official sources.

 According to sources, Shafiqul Islam was reluctant to continue as observer in ICB Islamic Bank.

Earlier, KM Abdul Wadood, general manager of banking regulation and policy department of Bangladesh Bank, was deployed as observer in the ICB Islamic Bank.

But he was withdrawn from that bank a month earlier and transferred to Housing Fund and Fund Management Unit.

He served three years as observer in the ICB Islamic Bank.

According to sources, Governor Dr Atiur Rahman had to remove Abdul Wadood from ICB Islamic Bank due to pressure from the bank’s directors.

On the other hand, Abul Kalam Ajad, general manager of inspection department of the central bank, performed as observer in Islami Bank prior to Kazi Sayedur Rahman.

Earlier on November 27, Bangladesh Bank posted an observer in the trouble-hit BASIC Bank Ltd to ensure enforcement of regulations and help revive the bank from continuous financial deterioration.

Ashok Kumar Dey, general manager the department of banking inspection, has been posted as BASIC Bank observer and assigned to attend all the board meetings of the bank and observe the audit reports.

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