In a robust effort to tighten regulatory discipline and rebuild credibility in the financial sector, the Bangladesh Financial Intelligence Unit (BFIU) has instructed the top leadership of all scheduled banks to sign binding declarations against corruption and money laundering. The directive, issued through an internal circular, reflects a heightened regulatory response to persistent governance shortcomings and repeated instances of financial misconduct.
According to the new guidelines, chairmen, directors and managing directors must formally affirm that they will not engage in, endorse or overlook any form of bribery, corruption or unethical financial activity. The BFIU has standardised the wording of these declarations and made it compulsory for the signed documents to be displayed prominently within executives’ offices. This measure is designed to ensure both symbolic and practical accountability at the highest levels of bank management.
The move comes amid increasing concern over weak governance structures, lax credit discipline and insufficient risk controls across the banking industry. In recent years, multiple cases of large-scale loan fraud and irregular approvals have revealed systemic vulnerabilities, prompting calls for stricter oversight and enforcement.
In addition to the general integrity pledge, bank leaders are required to submit a separate declaration focusing specifically on the prevention of money laundering and fraudulent trade transactions. Particular emphasis has been placed on irregularities involving letters of credit, an area identified as especially prone to abuse. These additional declarations must also be displayed in visible locations within office premises.
Core Regulatory Requirements
| Requirement | Description |
|---|---|
| Integrity pledges | Senior officials must sign formal anti-corruption declarations |
| Mandatory display | Signed pledges must be visibly placed in offices |
| Additional declarations | Separate commitments on anti-money laundering and trade integrity |
| Applicability | Required for all current and future leadership appointments |
| Reporting system | Banks must establish secure channels for customer complaints |
The BFIU has further directed banks to actively inform customers that they may report incidents of corruption, bribery or harassment directly to the authority. To facilitate this, financial institutions must implement confidential reporting systems, including complaint boxes and QR code-enabled digital channels, ensuring that whistleblowers are protected.
A significant feature of the directive is the tightening of accountability in lending practices. Any approval of loans outside established policy frameworks, or without proper due diligence, will be treated as a punishable offence. The regulator has issued strong warnings against fraudulent lending supported by forged documents, fictitious collateral or manipulated borrower information.
The circular also reinforces a strict zero-tolerance stance on money laundering, describing it as a serious offence against national economic stability. Suspicious transactions, undocumented trade activities, fabricated export bills and irregular letters of credit have all been highlighted as high-risk areas requiring intensified monitoring.
Through these comprehensive measures, the BFIU aims to re-establish discipline, strengthen ethical governance and restore public confidence in the banking sector. The directive signals a broader shift towards stricter enforcement, enhanced transparency and a more accountable financial system.