1.

MD Muntasir Hasan Khan (ID 183004202)

2. Mashnuba Fatiha (ID 172000402)
3. Abdullah Al Mukit (ID 172001302)
4. Rashel Hossain (ID 172001202)
5. Nayan Das (ID 172001602)
 GROUND HISTORY
• The Anti-Corruption Commission (ACC) o filed 12 cases against 53 officials of five banks and the
Bismillah Group, a terry towel producer, for their alleged involvement in the embezzlement of funded
loans worth over Tk9.9bn.
• The Bismillah group, with the help of the bank officials, allegedly embezzled around Tk5.27 billion from
Janata Bank, over Tk3.26 billion from Prime Bank, Tk1.54 billion from Jamuna Bank, Tk1.04 billion
from Shahjalal Islami Bank and Tk625.3m from Premier Bank in three years.
• Bismillah Group, in conjunction with the bank officials, misappropriated the cash via mortgages against
trusted receipts exploiting names of bogus overseas buyers, as per the investigation document.They won
cash rewards against bogus export papers, taking advantage of sales of inland bills and overpricing non-
export products.
• The investigation even observed that laundering money overseas was done by the party. The party
reportedly misappropriated a sum of about Tk12Billion but the commission made a complaint on
Tk9.9bn sponsored loan misappropriation after its eight-month investigation.
•  ACC reports claimed the group's Managing Director was the brain behind the embezzlement.
RESPONSIBLE FOR SCANDAL
 Poor governance structure is primarily responsible for
this crises.
The number of the big companies are family-run.
Internal skills of the company are highly important for
achieving sustainability by strategy formulation.
Independent directors are named taking into account
political considerations that result in negative bank
results due to a lack of management expertise.
The Board is an important factor of corporate
governance and it safeguards the rights of outside
directors.
 AUDITORS RESPONSIBILITY
Auditors responsibilities are –
 To identify and assess the risk of misstatement in financial statement.
 To obtain sufficient evidence as to misstatements ,fraud through designing and implementing
appropriate resources.
 To respond appropriately as to misstatements and frauds.
 To express an opinion on the consolidated financial statements regarding the financial details of
the organizations.
 The group auditor is responsible for group audit guidance, monitoring, and results.
 An unmodified opinion is given when the auditor may conclude that the financial statements offer
an accurate and honest view and agree with the relevant financial reporting requirements in all
material respects.
 PUNITIVE ACTION AGAINST FRAUDULENT
According to section 334 under companies act 1994, for providing or giving false evidence
punishment is imprisonment up to 7 years and fine or both. The Serious Crimes Act seeks to
enhance law enforcement agencies 'ability to prevent fraud and other serious organized crime,
and to promote criminal asset recovery. This also implements new steps to deter or deal with
organized crime including fraud prevention. When the court is convinced that a person has been
involved in a serious crime and has fair reasons to conclude that the order will protect the public
by banning or limiting the actions of the individual, including financial resources, business
transactions, job arrangements and communications, a protective order can be imposed.
Executives of the Bismillah Group, including its Managing Director Khaza Solaiman Anwar
Chowdhury, his wife and the Chairman of the Nowrin Hasib Firm, have been imprisoned for ten
years in a case filed for laundering.
LESSON
Corporate governance has a direct impact on the
efficiency and profitability of Bangladesh's banks.
Board diversity suggests board members must be
professional in order to work well, so they should
be in separate sector amongst other than family
members. The areas of corporate governance in
which Bangladeshi banks need to strengthen are
to establish ownership and select separate banks
'independent directors from self interest & family
members, loan needs to allocate appropriate
credit policy & instructions, proper enforcement
with regulatory authority, etc. Good corporate
governance covers such issues as the following-
Board members must have the sound definition.
RECOMMENDATION
If the banks pick the fraud individuals whose
purpose is not to pay back the loan, the bank will
face greater listed loans, collapsing their banking
operations. And if the right borrower is picked,
the bank should be informed or aware of the
borrower's details which is trustworthy. Proper
auditing is the only instrument that can eliminate
all bank fraud and scams. Yet, for different
reasons, the audit process can not be completed
properly. People who are auditing may stay under
control from management, or may even be
compromised. Just one audit takes place in a year
in some banks, while at least two audits are
mandatory in compliance with law.