BFIU bars banks, NBFIs from transactions with PLFS

Staff Correspondent | Published: 00:00, Jul 16,2019

 
 

Bangladesh Financial Intelligence Unit on Monday instructed all the banks and non-bank financial institutions not to conduct any transaction with the crisis-hit People’s Leasing and Financial Services Limited.

Besides, the BFIU also instructed the banks and NBFIs to block fund withdrawal from the accounts of eight former directors and three former top executives of PLFS as per a High Court order, Bangladesh Bank deputy general manager Md Asaduzzaman Khan told New Age on Monday.

Asaduzzaman was appointed as the interim liquidator of PLFS by the HC on Sunday.

Former PLFS directors are: M Moazzam Hossain, Nargis Alamin, Humaira Alamin, Arafin Shamsul Alamin, Mohammad Yusuf Ismail, Motiur Rahman, Biswajit Kumar Roy and Khobiruddin Mia.

Moazzam is also the former chairman of PLFS.

PLFS’ former top executives are: Kobir Mustaq Ahmed, Nripendra Chandra Pandit and Mohammad Shohidul Haque.

On Sunday, Bangladesh Bank filed an application with a High Court bench for the liquidation of PLFS following approval from the finance ministry.

Irregularities in PLFS and its failure to repay depositors’ money prompted the central bank to seek government’s approval for liquidation of the entity.

Earlier, the BB removed its previous board of directors based on an inspection on June 9, 2015.

The situation of the NBFI, however, continued to deteriorate despite the BB moves to revive its financial health.

As of December last year, PLFS, established in November, 1997, collected around Tk 2,000 crore — Tk 700 crore from individuals and Tk 1,300 crore from different banks and NBFIs.

Out of the entity’s Tk 1,131 crore disbursed loans, Tk 748 crore have become defaulted, as per the BB data.

Of the defaulted loans, Tk 570 crore have been swindled by the entity’s directors.

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