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Download PDF Bangladesh Bank (BB) yesterday sent letters to 10 commercial banks, which gave loans to Chittagong-based businessman Nurunnabi against fake documents, asking why actions should not be taken against the banks for violating the Money Laundering Act.
During inspections at different branches of the banks in the port city, it was found that the banks allowed Nurunnabi to open accounts either in his name or fictitious names and loans of huge amounts were issued through irregular processes, the BB letter said.
The banks are directed to reply to the central bank by May 15.
The banks are — First Security Bank (Agrabad branch), Bangladesh Commerce Bank Limited (Agrabad), Mutual Trust Bank (Khatunganj), Jamuna Bank Limited (Agrabad), Social Investment Bank Limited (Agrabad), IFIC Bank (Shah Amanat Market Branch), National Credit and Commerce Bank Limited (Kadamtoli), Premier Bank (Agrabad), Dhaka Bank (Agrabad) and Sonali Bank (Mithagoli).
Of the seven-point direction in the BB letter, one asked why the banks would not be fined for giving loans to different fictitious companies of Nurunnabi, who had produced fake documents.
The letter said the loans were given to Dewan Enterprise, Moni International, Kashem and Brothers, MR Traders, Square International, Nawab Mia, Anwar Mia, Abdul Hannan, ASM Alamgir, SA Enterprise, Hannan Traders, AH Corporation, Majid and Brothers, RN Enterprise and MM Trading, but the banks did not maintain necessary deposit against them.
The BB directions asked the banks to classify all loans taken out by Nurunnabi as bad loans and take necessary legal steps to recover the loans from him and the beneficiaries.
The central bank also directed the banks to determine actual liabilities of Nurunnabi with the banks and take the necessary securities against the loans to make those secured.
Besides, the banks were asked to identify the officials of the banks’ branches and head office involved in violating the existing rules and regulations and take administrative and legal actions against them.
Boards of directors and management of the banks are also directed to implement the guidelines prepared by the central bank on credit risk, internal control and compliance.
On Sunday, the BB sent the findings of its preliminary inquiry into the defrauding of the banks by Nurunnabi to the Anti-Corruption Commission (ACC) for in-depth probe and taking legal actions. The central bank investigation found that Nurunnabi swindled Tk 628 crore out of 10 banks in the port city showing false documents of his “32 companies.”
December 11th, 2007 at 10:23 am
useless