A financial institution in Bangladesh disbursed a huge amount of loans to several companies owned by an unnamed man. The borrower soon became the chairman of the firm and positioned his associates as directors on the financial institution's board, according to the report. This was a violation of the Financial Institutions Act,1993 which limited investments by financial institutions in the capital market to 25 percent of their paid-up capital. Around Tk 32 billion was subsequently transferred out of the financial institution’s entire loan portfolio of Tk 50 billion. Upon uncovering the “contours of this financial scam”, the BFIU forwarded an intelligence report to law-enforcement for further action.

Source: bd News24 January 08, 2021 10:35 UTC