BB prioritising reforms in Shariah-based banks: Spokesperson

Bangladesh Bank is prioritising reforms in Shariah-based banks, which have reportedly been exploited by a group involved in large-scale money laundering through fake companies.

Bangladesh Bank Spokesperson Husne Ara Shikha disclosed this during a press conference on Wednesday, noting that reform efforts are currently focused on 11 banks, with plans to extend these reforms to others afterward.

Addressing concerns about the effectiveness of the recently established task forces, the central bank spokesperson explained that one task force is dedicated to banking reforms, a second is working to enhance the skills of Bangladesh Bank officials, and a third is focused on recovering laundered funds.

Lawyers and consultants from various countries are also being recruited to assist in retrieving the money laundered abroad, she added.

Shikha acknowledged the challenges of tracking illicit financial flows, particularly when money is moved through informal channels like hundi, but confirmed that the Bangladesh Financial Intelligence Unit (BFIU) is actively investigating these issues.

According to legal regulations, however, the BFIU does not share specific information on such cases with bank officials.

On the topic of inflation control, the Bangladesh Bank spokesperson noted that the recent hike in the policy interest rate has already shown positive effects, with inflation beginning to ease. If this trend continues over the next six months, inflation is expected to drop to single digits, she said, expressing optimism based on similar outcomes in other countries.