Business-Analysis
Suspicious transactions increased by 64.57 percent in FY 2022-23: BFIU
Suspicious Transactions Reports (STRs) have increased by 64.57 percent in the fiscal year 2022-23, compared to the FY2021-22 in the country.
This information has been revealed in the annual report of the Bangladesh Financial Intelligence Unit (BFIU) for the fiscal year 2022-23. The BFIU was established as a wing of the BB in 2002 to protect money laundering and terror financing.
Masud Biswas, chief of BFIU, presented the report in a press conference in the conference hall of Bangladesh Bank (BB) on Tuesday.
Read: DCCI seminar urges sustainable policy reforms for trillion dollar economy
He said that in the fiscal year 2022-23, there were 14106 suspicious transactions reports. The STRs increased by 64.57 percent or 5535 in one year. In the previous fiscal year 2021-22, this number was 8571 and in the fiscal year 2020-21, it was 5280.
The BFIU chief said that all the STRs are not true, after identifying any such transactions, the BFIU investigated the issue. Whenever they got evidence of any crime action was taken against them, he said.
Masud said that 80 percent of money laundering is happening through the banking system. If banks do not cooperate to stop such transactions, it isn't easy to control money laundering. Because once money is laundered, it cannot be brought back.
He said that the BFIU works to sign MoUs with 10 countries to bring back the smuggled money and cooperate to stop it.
Read: FBCCI wants strong role from commercial counsellors at missions abroad to capture new export markets
In response to a question, the head of the BFIU said that 59 cases of money laundering have been registered based on the information of the BFIU. Among them, the ACC has filed 47 cases, CID 10, and NBR's special cell 2. These are not settled yet.
According to the BFIU report, banks have submitted a maximum of 12809 suspicious transaction reports in the entire fiscal year of 2022-23. The banks submitted 7999 reports in the previous fiscal year. Financial institutions submitted 121 reports. And the money exchange houses have submitted 900 reports.
BFIU Executive Director Rafiqul Islam, Director of Foreign Exchange and Policy Department of BB Sarwar Hossain, and Additional Director Kamal Hossain were present at the press conference.
Bangladesh seeks extended credit terms from Saudi Arabia amid dollar crisis: Salman F. Rahman
During a recent trip to the Kingdom of Saudi Arabia (KSA), Salman Fazlur Rahman, Prime Minister’s Advisor on Private Industry and Investment, sought extended credit terms to alleviate Bangladesh's pressing dollar crisis. This request was made to facilitate longer payment periods for fuel imports from Saudi Arabia, a critical concern given the current financial constraints.
In a press briefing held on Tuesday (February 06, 2024) at the Bangladesh Investment Development Authority (BIDA) building upon his return, Rahman shared insights from his three-day visit. “Currently, we have a 45-day window to settle payments for fuel imports from Saudi Arabia. Given the dollar scarcity, extending this to a year would greatly benefit us. The Saudi officials have agreed to consider this proposal,” Rahman disclosed.
Rahman represented Bangladesh at the Islamic Military Counter Terrorism Coalition (IMCTC) meeting, emphasizing Bangladesh’s firm stance against terrorism and the misuse of Islam to justify such acts. “Terror has no religion, and by fostering cooperation among Islamic nations through the IMCTC, we aim to combat the defamation of Islam by terrorism,” he stated.
Read: President urges KSA to invest more in Bangladesh
The advisor highlighted the unanimous condemnation of the ongoing crises in Gaza by meeting participants, alongside a collective call for resolution. The plight of the Rohingya refugees in Bangladesh was also addressed, with a commitment to seek solutions.
On the economic front, Rahman revealed Saudi investors’ interest in establishing a special economic zone in Bangladesh. “We are keen to allocate an economic zone to Saudi Arabia within Bangladesh. Their investment minister has shown enthusiasm for this project,” Rahman noted.
Additionally, plans are underway to bolster Bangladesh’s agricultural sector through the joint establishment of a urea fertilizer plant in Saudi Arabia. “This collaboration aims to ensure a steady supply of fertilizers, enhancing our agricultural output. The proposal has been warmly received, with a feasibility study due to conclude by March,” he explained, highlighting the opportunity for private sector involvement alongside government-to-government initiatives.
Read more: KSA's Majlish E Shura Council President Abdullah arrives in Dhaka
Bangladesh's foreign exchange reserves fall below 20 bln USD
Bangladesh's foreign exchange reserves fell below 20 billion U.S. dollars by the end of January, the latest central bank data showed.
Bangladesh Bank (BB) data showed the country's foreign exchange reserves stood at 19.94 billion dollars on Jan. 31, according to the International Monetary Fund calculation method, compared with 17.20 billion dollars on Dec. 31.
Read: Bangladesh Bank sets an 11-point roadmap to realise default loans
BB said the gross reserve was 25.09 billion dollars by the end of January.
The reserve calculated under the IMF's balance of payments and investment position manual method is immediately usable, while the gross reserve is also usable subject to the realization of investment.
For a growing economy like Bangladesh, forex reserves equivalent to six months' import bills are considered adequate.
With the existing reserves, however, central bank officials said Bangladesh is in a position to pay about four months' import bills.
Bangladesh's gross foreign exchange reserves hit an all-time high of 48 billion dollars in August 2021.
Read: NBR’s pre-budget discussion to formulate budget for FY2024-25 begins Feb 4
In a bid to boost shrinking forex reserves, the central bank has taken various measures, including relaxed rules, to woo more remittances from millions of Bangladeshi people living and working abroad in recent years.
Brac Bank secures Bancassurance business approval
Brac Bank PLC has secured approval for Bancassurance Business from Bangladesh Bank.
Mohammad Shahriar Siddiqui, Director, Banking Regulation & Policy Department, Bangladesh Bank, handed over the approval document to Syed Abdul Momen, Deputy Managing Director, Brac Bank PLC, at Bangladesh Bank Head Office in Dhaka on January 28.
Mohammad Ashfaqur Rahman, Additional Director, Banking Regulation & Policy Department, Bangladesh Bank; and Mahbubur Rahman, Chief Bancassurance Officer, Brac Bank PLC, were present on the occasion, said a bank press release.
Brac Bank will arrange training courses on Bancassurance for its officials under tutelage of Insurance Development and Regulatory Authority and Bangladesh Insurance Academy.
As per regulatory approval, Brac Bank will start selling insurance products soon to its valued customers.
UAE businesses eye skilled manpower, investment in Bangladesh
Businesses and Entrepreneurs of the United Arab Emirates (UAE) are interested in investing in Bangladesh and hiring skilled manpower from the country.
Mahbubul Alam, president of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) has assured all kinds of support to the UAE investors in this regard.
Mahbubul Alam and Mohammad Ali Rashed Lootah, president and CEO of the Dubai Chamber of Commerce discussed the issues during a meeting held recently in Dubai, UAE.
Read: Envoys of Japan, South Korea, Thailand, Malaysia, Saudi Arabia, UAE and others congratulate PM Hasina
The discussions revolved around enhancing economic collaboration between Bangladesh and the UAE.
Highlighting the longstanding friendly relations between the two nations, the FBCCI president Mahbubul said, “The United Arab Emirates is one of the genuine friends of Bangladesh. UAE has always stood by Bangladesh as one of the partners in the economic development of Bangladesh.”
“Hundreds of thousands of our remittance warrior brothers and sisters are working tirelessly to strengthen the country's economy by sending remittances from the UAE,” he added.
He reassured the UAE businessmen of FBCCI's commitment to providing full support for investments and skilled manpower collaborations.
Mahbubul also emphasized the numerous measures taken by the Bangladeshi government to attract foreign investments, showcasing the potential sectors available for UAE businessmen.
He highlighted the establishment of 100 Special Economic Zones (EPZ) and the completion of major infrastructure projects like the Matarbari deep-sea port, Bangabandhu Sheikh Mujibur Rahman Karnaphuli Tunnel, Padma Bridge, and Rooppur Nuclear Power Plant which showcases the commitment of the Government to ensure a safe and smooth business environment.
Read: Russian President Vladimir Putin to visit Saudi Arabia and UAE, host of COP28 climate talks
Encouraging UAE businessmen to explore investment opportunities, the FBCCI president Mahbubul pointed to the success stories of countries like Japan, India, and Korea, who have already invested in EPZs. He specifically drew attention to the vast investment potential in Chittagong, Payra, and Matarbari deep-sea ports.
He also urged UAE companies to consider Bangladesh's globally recognized sectors, such as garment, ceramics, leather goods, and jute and jute goods, emphasizing the benefits of investment in these areas.
In response, Dubai Chamber President Mohammad Ali Rashed Lootah expressed interest of UAE businessmen in Bangladesh. He also mentioned that a team has already been formed by the Dubai Chamber to verify the investment potential in Bangladesh. He also expressed their interest in hiring skilled manpower from Bangladesh.
Read: Bangladesh needs to introduce social insurance for all, not social safety net: CPD
Meanwhile, the president of Dubai Chamber called upon Bangladeshi businessmen to invest in Dubai.
FBCCI Director Mohammad Fayazur Rahman Bhuiyan, Fakhorus Salehin Nahian, Deputy Head of Mission of Abu Dhabi Embassy Muhammed Mizanur Rahman, Commercial Counselor of Bangladesh Consulate in Dubai Ashish Kumar Sarkar, and others were present at the meeting.
4-day garments, machinery, allied products expo begins in Dhaka Thursday
GTB 2024, an international trade show focused on garment machinery and allied products, is being held from Wednesday in Dhaka.
The exhibition, simultaneous with the GAP Expo, will showcase garment accessories and packaging, aiding the technology sourcing needs of the Bangladesh RMG sector.
The event is scheduled to be held between January 11 and 14 at the International Convention City, Bashundhara, Dhaka.
Read: Global economy will slow for a third straight year in 2024, World Bank predicts
The 21st edition of GTB 2024 and the 13th edition of GAPEXPO 2024—International Garment Accessories & Packaging Expo—are ointly organised with the Bangladesh Garment Accessories Packaging Manufacturers and Exporters Association.
A press conference regarding the event was held at a hotel in the capital on Wednesday.
Deputy Secretary of the Ministry of Commerce and Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) Moshiur Rahman, Secretary Ruhidas Jodder, and Additional Secretary Rafiqul Islam were present at the press conference, along with Managing Director of Ask Trade and Exhibitions Private Limited Tipu Sultan Bhuiyan and Director Saleem Basha.
The four-day event will be held in eight halls of the ICCB, where 300 exhibitors from over 20 countries will participate, making it one of the largest trade shows of its kind in Southeast Asia.
Read: DSE turnover jumps over 28 percent to Tk441 crore after election day
The organiser said the exhibition is an excellent opportunity to witness the latest technology in action, update, and upgrade by talking to various experts present at various booths with global exposure and experience.
For the past 20 years, GTB has been bringing the Global Technology Players under one roof, showcasing cutting-edge sewing, finishing, embroidery machinery, spares, and allied products, thus making it a preferred choice of RMG makers to visit and source their needs.
GTB 2024: Garment Technology Bangladesh 2024 will be visited by decision-makers, technical heads, the sourcing team, and the trade from across the country to source technology, machinery, allied products, and spares.
Collective development of furniture industry: HATIL’s next generation continues to uphold founder’s vision
When Al-Hajj Habibur Rahman established H.A. Timbers Industries Limited on the banks of Buriganga in 1963, his vision was rooted in the idea of fostering “collective development” among every businessman in the wood industry.
In the steady hands of Habibur Rahman, H.A. Timber Industries Limited took shape and became one of the prominent timber businesses in Farashganj, which was then Dhaka’s biggest timber hub.
The resonance of his (Habibur Rahman’s) vision continues to reverberate even today, nearly 60 years later, through the voices of HATIL’s next generation of leaders.
The concept of collective development is echoed in the words of Mushfiqur Rahman, Assistant Director at HATIL Complex Ltd.
During an interview with UNB, Mushfiqur shared insights into his role within the company and how his journey began with HATIL. Moreover, he shed light on both the company’s vision and his personal aspirations for the country’s leading furniture brand.
“We aim to enhance the backward linkage of Bangladesh’s furniture industry. Presently, the backward linkage in Bangladesh’s furniture industry is considerably weak. For instance, a major portion of our raw materials is imported from China. This scenario isn’t unique to HATIL; it’s a prevalent situation across various industry players as well,” he told UNB.
Read more: Inside HATIL’s manufacturing philosophy
Regarding the founding chairman’s commitment to collective development, HATIL’s company secretary, in a previous interview, had said, “Habibur Rahman was a leader who always thought of everyone, not just about himself. His vision was ‘us’ not ‘me’. He believed in collective development.”
PRIMARY FOCUS ON MEETING CUSTOMERS’ NEEDS: MUSHFIQUR RAHMAN
Mushfiqur started working at HATIL in October 2020 after graduating from the University of Sydney.
Despite diverse job experiences in Australia, notably in marketing and sales roles, he lacked exposure to the furniture industry. His stint at Harvey Norman provided his first encounter with this sector. Upon returning to Bangladesh, he joined HATIL as a management trainee. During this period, he underwent intensive month-long training across all departments and contributed significantly to a joint venture with Nolte Group as an Operations Lead for two years.
Transitioning to the HATIL factory in 2023, he initially worked with the plywood section and now focuses on the interior team within the production department, having prior experience with the bentwood team.
Read more: Commitment towards sustainability at the heart of HATIL: Company Secretary Md. Rezaul Karim
E-payment service launched at Islamic University
The authorities of Islamic University in Kushtia launched an e-payment service for the students of the university with a view to simplifying transactions for them.
Read: 5 injured in BCL factional clash at Islamic University
IU vice-chancellor Professor Shaikh Abdus Salam inaugurated the e-payment service at an e-payment application launching ceremony as chief guest, a press release issued by IU information, publication and public relations office deputy director Rajibul Islam on Saturday (November 25, 2023).
The service will allow the students to pay all sorts of fees, including admission, examination, and residential hall fees, online without having to go to the bank.
Read: Islamic University and Edith Cowan University to undertake joint academic, research activities
Through the e-payment service software of Agrani Bank, students will be able to pay money through bKash, Nagad, and Rocket using their ID. This service will be available to all students from the 2017-18 academic session of the university.
The online banking service will be a convenient and efficient way for students to pay their fees, IU acting registrar HM Ali Hasan said that the e-payment service would save students time and hassle.
Read: Islamic University officials continue work abstention for 2nd day
It would also help to reduce the number of people visiting banks. The service was expected to be well-received by students, he added.
Thrust on good governance in banking sector discussed at FSDWC meeting
Deputy Governor of Bangladesh Bank Abu Farah Md. Nasser on Thursday stressed the need for taking proper, visible and fast actions to ensure good governance in the banking sector for addressing monumental challenges faced by the sector.
The deputy governor was addressing the 11th Financial Sector Development Working Committee (FSDWC) meeting virtually on Thursday. Business Initiative Leading Development (BUILD) organised the event.
Barrister Sameer Sattar, president of Dhaka Chamber of Commerce and Industry, co-chaired the meeting.
He hoped that the present situation of investment and trade will get momentum after the upcoming election and new administration will boost the confidence of the investors.
Read: Inside HATIL’s manufacturing philosophy
“From Bangladesh Bank, we have adopted a single exchange rate policy despite it is fixed by the ABB and BAFEDA, we are strictly monitoring the rate. To manage the exchange rate fluctuation, the central bank is in contact with the Reserve Bank of India,” he said.
The DCCI president stressed the importance of governance in managing non-performing loans, advocating for a swift recovery plan to revitalize the financial sector. He commended Bangladesh Bank for streamlining loan processes, facilitating easier access to financing, said a press release.
BUILD CEO Ferdaus Ara Begum, presented a policy paper recommending an increase in the ceiling of the Export Facilitation Pre-Financing Facility (EFPF) to Tk 30,000 crore.
Read: Basel AML Index: Bangladesh improves in preventing money laundering
Experts at the meeting, including Prof Dr Mahmood Osman Imam and ICAB Vice President Md. Yasin Miah FCA, echoed the importance of good governance, fiscal prudence, and accountability to attract deposits and investments, it added.
Inside HATIL’s manufacturing philosophy
To understand any company’s astronomical rise in any industry, it’s imperative to understand the story of the said company.
The story of HATIL, the country’s leading furniture brand, started at a small timber shop in Dhaka’s Farashganj, by the bank of the Buriganga River, almost 60 years ago.
In the firm hands of Alhaj Habibur Rahman, H.A. Timber Industries Limited took shape and became one of the prominent timber businesses in Farashganj, which was then Dhaka’s biggest timber hub.
Over the next 32 years, before HATIL’s formal beginning in 1989, H.A. Timber Industries Limited positioned itself as a key player in the country’s timber industry.
“He was a visionary man with a great reputation,” HATIL’s Company Secretary Md. Rezaul Karim ndc said about the founding chairman.