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Friday, 10 October, 2025

ACC Opens Investigation into Former Islami Bank Chairman Obayed Ullah

Express Report
  09 Oct 2025, 03:07

The Anti-Corruption Commission (ACC) has initiated a probe into former Islami Bank Bangladesh chairman Obayed Ullah Al Masud amid serious allegations of loan irregularities, conflict of interest, unethical investments, and embezzlement.

According to ACC spokesperson and Deputy Director Akhtarul Islam, Assistant Director Md Nazmul Islam is overseeing the investigation.

Obayed, who previously served as managing director of Sonali Bank and Rupali Bank, is alleged to have abused his position for financial gain during his tenure at Islami Bank.

The Bangladesh Financial Intelligence Unit (BFIU) recently sent a detailed report to the ACC highlighting a series of irregularities and financial discrepancies during Obayed’s tenure, recommending “necessary” action.

Speaking on condition of anonymity, a senior ACC officer told bdnews24.com that the investigation was launched based on the BFIU report.

The officer added, “The report identified several financial irregularities during his time as managing director. The Verification and Analysis Committee reviewed the report and recommended an investigation. The probe has started based on that recommendation.”

According to the report, while serving as Rupali Bank’s managing director, Obayed was involved in abuse of power, nepotism, loan fraud and risky investments, resulting in “irregularities” worth hundreds of millions of taka.

In 2019, a cash credit loan of Tk 21 million was sanctioned in favour of a company named MAS Corporation. Later, a substantial portion of the loan was transferred to the personal accounts of the former MD and his son at UCB Principal Branch, it added.

The borrower Md Shamsul Salehin was Masud’s cousin. The loan, now classified as “non-performing”, carries an outstanding amount of Tk 36.3 million.

The Bangladesh Financial Intelligence Unit (BFIU) has found multiple irregularities linked to former Islami Bank Bangladesh chairman Obayed Ullah Al Masud, citing evidence of loan fraud, questionable investments, and misuse of authority during his tenure at state-run Rupali Bank.

According to the report, Rupali Bank approved a loan “without conducting proper customer due diligence (CDD)” and “failed to file any Suspicious Transaction Report (STR)”, in breach of anti–money laundering protocols.

The findings revealed that in February 2020, Rupali Bank invested Tk 150 million in Candle Stone Investment Partners Limited’s mutual fund, pricing each unit at Tk 10 despite a market value of only Tk 5 per unit at the time.

The report further stated that dividends worth Tk 3.64 billion were waived for Orion Infrastructure Limited, following which Tk 2.05 million was transferred from the company’s account to Obayed’s personal account.

Despite a liquidity crisis in the bank’s treasury, Obayed allegedly approved an investment of Tk 2.5 billion in Beximco Communications Limited’s corporate bond, which generated no interest returns.

Additional investments — including Tk 100 million in fixed deposits at Padma Bank PLC, Tk 3 billion in Best Holdings Limited’s pre-IPO shares, and Tk 2 billion in Beximco Green Sukuk bonds — were described by the BFIU as “abnormal and suspicious.”

The report also flagged irregularities in the bank’s ICT procurement under Obayed’s leadership, noting “favouritism and lack of transparency.” Two unlisted companies were awarded contracts worth over Tk 19.5 million — one owned by Obayed himself and the other by a former director of the bank.

After assuming the chairmanship of Islami Bank, further allegations surfaced, including unauthorised foreign travel, personal trips billed as official visits, and unapproved meetings with correspondent banks, the report added.

It also mentioned that during one official trip, Obayed diverted to San Francisco instead of New York, raising suspicions of “personal motives” behind the detour.

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ACC Opens Investigation into Former Islami Bank Chairman Obayed Ullah

Express Report
  09 Oct 2025, 03:07

The Anti-Corruption Commission (ACC) has initiated a probe into former Islami Bank Bangladesh chairman Obayed Ullah Al Masud amid serious allegations of loan irregularities, conflict of interest, unethical investments, and embezzlement.

According to ACC spokesperson and Deputy Director Akhtarul Islam, Assistant Director Md Nazmul Islam is overseeing the investigation.

Obayed, who previously served as managing director of Sonali Bank and Rupali Bank, is alleged to have abused his position for financial gain during his tenure at Islami Bank.

The Bangladesh Financial Intelligence Unit (BFIU) recently sent a detailed report to the ACC highlighting a series of irregularities and financial discrepancies during Obayed’s tenure, recommending “necessary” action.

Speaking on condition of anonymity, a senior ACC officer told bdnews24.com that the investigation was launched based on the BFIU report.

The officer added, “The report identified several financial irregularities during his time as managing director. The Verification and Analysis Committee reviewed the report and recommended an investigation. The probe has started based on that recommendation.”

According to the report, while serving as Rupali Bank’s managing director, Obayed was involved in abuse of power, nepotism, loan fraud and risky investments, resulting in “irregularities” worth hundreds of millions of taka.

In 2019, a cash credit loan of Tk 21 million was sanctioned in favour of a company named MAS Corporation. Later, a substantial portion of the loan was transferred to the personal accounts of the former MD and his son at UCB Principal Branch, it added.

The borrower Md Shamsul Salehin was Masud’s cousin. The loan, now classified as “non-performing”, carries an outstanding amount of Tk 36.3 million.

The Bangladesh Financial Intelligence Unit (BFIU) has found multiple irregularities linked to former Islami Bank Bangladesh chairman Obayed Ullah Al Masud, citing evidence of loan fraud, questionable investments, and misuse of authority during his tenure at state-run Rupali Bank.

According to the report, Rupali Bank approved a loan “without conducting proper customer due diligence (CDD)” and “failed to file any Suspicious Transaction Report (STR)”, in breach of anti–money laundering protocols.

The findings revealed that in February 2020, Rupali Bank invested Tk 150 million in Candle Stone Investment Partners Limited’s mutual fund, pricing each unit at Tk 10 despite a market value of only Tk 5 per unit at the time.

The report further stated that dividends worth Tk 3.64 billion were waived for Orion Infrastructure Limited, following which Tk 2.05 million was transferred from the company’s account to Obayed’s personal account.

Despite a liquidity crisis in the bank’s treasury, Obayed allegedly approved an investment of Tk 2.5 billion in Beximco Communications Limited’s corporate bond, which generated no interest returns.

Additional investments — including Tk 100 million in fixed deposits at Padma Bank PLC, Tk 3 billion in Best Holdings Limited’s pre-IPO shares, and Tk 2 billion in Beximco Green Sukuk bonds — were described by the BFIU as “abnormal and suspicious.”

The report also flagged irregularities in the bank’s ICT procurement under Obayed’s leadership, noting “favouritism and lack of transparency.” Two unlisted companies were awarded contracts worth over Tk 19.5 million — one owned by Obayed himself and the other by a former director of the bank.

After assuming the chairmanship of Islami Bank, further allegations surfaced, including unauthorised foreign travel, personal trips billed as official visits, and unapproved meetings with correspondent banks, the report added.

It also mentioned that during one official trip, Obayed diverted to San Francisco instead of New York, raising suspicions of “personal motives” behind the detour.

Comments

US Report Commends Bangladesh for Progress in Combating Human Trafficking
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Justice Delayed: Only 55 Charge-Sheets Filed in 1,760 Anti-Discrimination Cases, IGP Says
July Uprising: 41 Districts Reported Deaths, IO Reveals
Khagrachhari Victim’s Medical Exam Finds No Signs of Rape: Doctor