Treasury heads of 10 banks seek penalty waiver

The treasury heads of 10 banks have appealed to the Bangladesh Bank for waiving the fine, which were imposed on them for their alleged involvement in US dollar rate manipulation.

They sent separate letters to the central bank this week for the waiver, said a senior official of Bangladesh Bank seeking anonymity.

The central bank imposed the fines as per the section 109 (7) of the Bank Company Act 1991, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque told The Daily Star.

He said the issue will be raised in the next board meeting of Bangladesh Bank and the board will take the decision in this matter.

A treasury head of a private commercial bank told The Daily Star that he is waiting for the positive response of the central bank in this regard.

Before the move, treasury heads of Social Islami Bank, Al-Arafah Islami, Mercantile, Modhumoti, Midland, Brac, Exim, Premier, Shahjalal Islami and Trust faced a fine of Tk 1 lakh each on September 28 due to their alleged involvement in US dollar rate manipulation.

The central bank officials had said their (treasury heads) explanation regarding the manipulation was not satisfactory.

That is why the central bank imposed the fines as per the section 109 (7) of the Bank Company Act 1991, he added.

The banking regulator on September 18 asked 10 banks' managing directors to explain why their treasury heads should not be penalised for their involvement in dollar rate manipulation this year.