Bangladesh Anti-Corruption Agency Charges 34 in $229M Bank Fraud Scheme
Bangladesh's Anti-Corruption Commission has brought charges against 34 individuals, including former senior executives of Janata Bank and officials connected to the S Alam Group conglomerate, in connection with alleged loan fraud totalling Tk1,963.5 crore ($229 million). The case, filed on 7 December 2025, represents one of the largest banking corruption scandals to hit Bangladesh's state-owned financial sector in recent years.
The complaint alleges systematic abuse of authority, criminal breach of trust, and violation of banking regulations that resulted in substantial losses to one of Bangladesh's largest state-owned commercial banks.
Background and Context
The case centers on Global Trading Corporation Ltd, a subsidiary of the S Alam Group, one of Bangladesh's largest industrial conglomerates with interests spanning steel, cement, shipping, and consumer goods. According to the First Information Report filed by ACC Deputy Director Mohammad Sirajul Haque, the fraudulent activities involved creating excessive funded and non-funded liabilities through manipulated loan documentation and violations of banking protocols.
State-owned banks in Bangladesh have historically struggled with governance issues and political interference. This latest case highlights ongoing challenges in enforcing banking regulations and preventing collusion between bank officials and powerful corporate borrowers in the South Asian nation's financial sector.
Key Figures and Entities
Among the primary accused are Rashedul Alam, managing director of Global Trading Corporation Ltd, and five company directors: Farzana Begum, Mohammad Abdus Sabur, Md Shahidul Alam, Md Saiful Alam, and Md Osman Gani. The complaint also names two inspection-service executives, Khandaker Robiul Haque and Khandaker Zahirul Haque, for allegedly facilitating the irregularities.
Former Janata Bank leadership faces significant scrutiny, including ex-chairman SM Mahfuzur Rahman and former managing director and CEO Md Abdus Salam Azad. The case implicates multiple senior executives across the bank's hierarchy, including Kamran Ahsan, Shahidul Haque, Masfiul Bari, Kamruzzaman Khan, Abdul Jabbar, Tajul Islam, and Ismail Hossain.
Legal and Financial Mechanisms
According to ACC investigators, the accused utilized several sophisticated mechanisms to execute the alleged fraud. These included approving and renewing loan limits in violation of established banking rules and internal guidelines, creating irregular Letters of Trust Receipt liabilities, and permitting import transactions without ensuring mandatory documentation, collateral, or insurance coverage.
The complaint details how bank officials allegedly colluded with borrowers to bypass standard lending procedures, including creditworthiness assessments and risk management protocols. The investigation suggests that internal controls designed to prevent such large-scale fraud were systematically undermined through coordinated action between bank employees and corporate executives.
International Implications and Policy Response
The case comes amid increased international scrutiny of Bangladesh's banking sector and anti-corruption enforcement mechanisms. Global financial institutions have repeatedly raised concerns about governance standards in South Asian banking systems, where state-owned financial institutions often face political pressure and regulatory capture.
Financial analysts suggest this high-profile prosecution could signal Bangladesh's commitment to addressing systemic corruption in its banking sector, potentially affecting future foreign investment decisions and international credit ratings. The case also highlights the challenges developing economies face in balancing rapid economic growth with robust financial oversight.
Sources
This report draws on the First Information Report filed by Bangladesh's Anti-Corruption Commission on 7 December 2025, court documents from the Chattogram District Integrated Office-1, and public statements from banking regulators. Additional context comes from historical financial sector analyses and prior investigations into Bangladesh's state-owned banking institutions.
