Bangladesh Bank has given instructions to suspend all loans and loan facilities in the name and other names under the S Alam Group.
Moreover, the group will not be able to withdraw any deposit in their names and other names. Credit cards in their names cannot be used for transaction.
The central bank asked six banks under the S Alam Group to abide by the instructions. The six banks are: Islami Bank, Social Islami Bank, First Security Islami Bank, Global Islami Bank (formerly NRB Global Bank), Union Bank and Commerce Bank. Meanwhile, the regulatory body has freed Islami Bank, Social Islami Bank and National Bank from the control of S Alam Group.
Meanwhile, the central bank has started monitoring the banks from which S Alam Group has loans in their names and other names. The Bangladesh Bank has formed special teams that have started inspecting those banks.
The central bank gave these instructions on Thursday. Similar instructions have been given to other banks from which S Alam Group has taken loans in their names and other names. The regulatory body has started to collect information of loans in their names and other names under the S Alam Group.
So far the group has withdrawn money from different banks in their names and other names under the shelter of the central bank.
Following the change of government, various measures are being undertaken. After Ahsan H Mansur took charge as the governor of Bangladesh Bank, the regulatory body started taking steps.
BB instructions
According to the Bangladesh Bank's instructions to the banks, fresh loans in the name of the group and other names cannot be given to S Alam Group and its related companies. Their previous loans cannot be renewed. If there are approved loans and loan ceilings for this group and its related companies, no withdrawal facilities will be permitted. As a result, money cannot be withdrawn and transferred from these accounts.
Letter issued seeking information
Bangladesh Bank (BB) has sought the bank account details of S Alam Group chairman Saiful Alam, his brothers and family members, in addition to information about their loans, lockers and savings certificates.
The Bangladesh Financial Intelligence Unit (BFIU), which operates under the central bank, issued the letter.
In the letter, alongside S Alam, information of his brother Mohammad Abdullah Hasan, Osman Goni, Abdus Samad, Rashedul Alam, Shahidul Alam and Morshedul Alam has been sought. Information of Saiful Alam's wife Farzana Parvin, their two sons Ahsanul Alam and Ashraful Alam has also been sought.
BFIU also wanted to know about outstanding loans and deposits in the accounts of family members of S Alam 's brothers.
Speaking to Prothom Alo, a managing director of a private bank said S Alam has taken control of banks by buying shares in his name and his family members. However, the majority of the loans has been taken in others' names. As a result, the real picture of the loans cannot be collected by seeking information in this way. Besides, S Alam's personal officers and top officials of the banks of the group are also beneficiaries of bank loans in various ways. If they are not caught, there will not be much headway about S Alam.