Bangladesh: AB Bank’s money laundering: JS body for action against local beneficiaries

March 15, 2017

A parliamentary body today asked the authorities concerned to identify and take action against the local beneficiaries in connection with the laundering of US$ 55 million by Arab Bangladesh Bank in the name of offshore banking.   Bangladesh Bank has so far recovered US$ 22.1 million of the total money laundered and is working on to recover the rest of the money, said Abdur Razzaque, chief of the parliamentary standing committee on finance, after a meeting of the committee at the parliament.

According to a finance ministry report submitted to the committee, US$ 55 million have been laundered as loans through an offshore unit of AB Bank to four firms in Singapore and the United Arab Emirates (UAE). In 2014 and 2015, the bank provided loans of US$ 1.2 million and US$ 29.5 to Global ME General Trading million and Semat City General Trading of the UAE respectively, while US$ 10 million and US$ 14.4 million to ATZ Communications Pte Limited and Eurocrats Holding Pte Ltd of Singapore respectively. The loans were provided without scrutinising the risks and assessing business capabilities, and also against insufficient collateral and equity and others, the report read.