Bangladesh to Merge Crisis-Prone Islami Banks Under State Ownership

Bangladesh Bank Governor Dr Ahsan H Mansur has announced plans to merge several crisis-prone Islami banks into one under state ownership to safeguard depositors' interests. This move comes as part of the central bank's efforts to strengthen the financial sector and prevent further instability. The decision follows the publication of the annual report of the Bangladesh Financial Intelligence Unit (BFIU), which highlighted the country's improvement in the Basel Anti-Money Laundering (AML) Index 2024. Bangladesh has risen 13 notches to 59th position from 72nd, attributed to intensified anti-money laundering initiatives.

Key Takeaways:

• Several crisis-prone Islami banks will be merged into one under state ownership to protect depositors' interests, according to BB Governor Dr Ahsan H Mansur.
• The central bank's priority is securing depositors' assets, with bank survival being a secondary matter.
• Investigations into money laundering cases are sometimes delayed due to inter-ministerial non-cooperation and complex role-sharing among entities.
• Amendments to the Money Laundering Act will empower the task force to recover stolen funds more effectively, leading to increased momentum in investigations.
• Bangladesh has improved in the Basel AML Index 2024, rising 13 notches to 59th from 72nd, due to intensified anti-money laundering initiatives.
• The BFIU received 17,345 Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) between July 2024 and May 2025, a 23% increase from the previous year.
• The BFIU forwarded 114 intelligence reports to law enforcement and investigative agencies and shared 1,220 pieces of information with relevant agencies investigating money laundering cases.

Statistics:

• 27,130 incidents of STRs and SARs reported by agencies between July 2024 and May 2025.
• 23% increase in STR and SAR reports received by the BFIU from the previous year.
• 17,345 STR and SAR reports received by the BFIU between July 2024 and May 2025.
• 114 intelligence reports forwarded by the BFIU to law enforcement and investigative agencies.
• 1,220 pieces of information shared by the BFIU with relevant agencies investigating money laundering cases.
• 13.91% rise in information sharing with relevant agencies from the previous year.

Sources:

• "Bangladesh Bank Governor, Dr Ahsan H Mansur, talks about state-owned bank plan", Dhaka Tribune.
• Bangladesh Financial Intelligence Unit (BFIU) annual report 2024.