BB fines treasury heads of 10 banks for selling dollars at higher rates

The Bangladesh Bank (BB) has fined treasury heads of 10 banks Tk 100,000 each for selling dollars at higher prices.

In this regard, the central bank sent letters to the banks.

The 10 banks are: Mercantile Bank, Premier Bank, BRAC Bank, Modhumoti Bank, Midland Bank, Exim Bank, Social Islami Bank, Al-Arafah Islami Bank, Shahjalal Islami Bank, and Trust Bank.

As part of process, on 18 September, the central bank issued show cause letters to the banks concerned. Earlier, on 3 September the first letter was sent about the allegation.

In the letters sent to these banks, the BB stated that the heads of the treasury department have no way to evade responsibility.

As the explanations of the banks were not satisfactory, the central bank took the decision to fine treasury heads of 10 banks, sources have said.

The treasury department of the banks oversees the demand and supply of dollars and taka in the bank. In some banks, officials of the rank of deputy managing director are the heads of the treasury department.

High officials at several concerned banks said allegations have been made against most of the treasury heads that their banks have sold dollars at higher prices to the importers than the price set by the authorities.

There are allegations against some treasury heads that they have bought wage earners' income in additional prices.

Last year, BB had removed heads of the treasury department of six banks on the same allegation. However, the central bank could not uphold its decision.

Speaking to Prothom Alo regarding the matter on Sunday, BB executive director and spokesperson Mezbaul Haque said he couldn't know the matter formally. The concerned department did not inform him anything.
However, the officials, who received letters about the fine, confirmed it to Prothom Alo.

Several heads of treasury heads said they have received letters.

According to the letter, as per Section 109 (7) of the Bank Company Act, you have been fined. They have been asked to pay the money within 14 days. Although the action has been taken against treasury heads of 10 banks, no steps have been taken against the banks.  

The officials who have been fined said they would appeal against the punishment.

Letters were sent to 10 banks on Monday seeking to know why action should not be taken against the treasury-heads as their explanation was not satisfactory. The subject of the letter was “in reference to the sale of foreign currency to corporate customers at a higher rate than the fixed price”.

The letter said, “Your statement against the complaint of taking additional money from the customer in the name of a corporate deal for the payment of import bill, violating the rate announced by the Bangladesh Bank, was not acceptable. The treasury head of your bank cannot evade liability by selling dollars at high prices."

The letter also sought answers within five days of the issuance of the letter as to why actions would not be taken against the treasury heads of the bank under Section 109 (7) of the Bank Company Act.

The Bangladesh Bank officials say that they will take necessary initiatives after receiving the answers from the bank.