Money Laundering of 22 Lakh Crore Taka through LC and Loan Frauds in the Banking Sector during the Former Government

During the tenure of the ousted Awami League government, the banking sector witnessed massive money laundering and loan fraud. Various reports from the central bank indicate that approximately $23,400 crore, equivalent to around 22 lakh crore Bangladeshi Taka, was laundered abroad through the country’s banks and commercial transactions. Most of this laundering was carried out under the guise of import LCs and disguised export transactions.

According to the reports, the highest amount of money laundering was carried out by S. Alam Group, followed by Beximco, NASA, Bismillah, and Crescent Group. Evidence shows that S. Alam Group committed loan fraud worth 2.25 lakh crore Taka in the banking sector, of which 1.25 lakh crore Taka was sent abroad. This was facilitated through fake LCs and offshore banking systems.

Beximco Group also laundered funds abroad using loans from Janata Bank. NASA and Bismillah Group similarly transferred huge sums abroad under the pretext of import-export operations. The reports also mention political interference and the involvement of corrupt, opportunistic bank officials and company directors in these activities.

Dr. Moinul Islam, former president of the Bangladesh Economic Association, told Jugantor, “Many of the individuals involved in money laundering have been identified, but there has been little progress in recovering the laundered funds. Without judicial action, retrieving this money will be difficult.”

The reports indicate that political influence, high-level bank approvals, forged documents, and fund transfers through foreign banks were commonly used methods in LC and loan frauds. This massive money laundering has had a severe impact on the banking sector and the national economy.