The Bangladesh Financial Intelligence Unit (BFIU) has ordered the freezing of bank accounts belonging to eight individuals, including former Bangladesh Securities and Exchange Commission (BSEC) chairman Shibli Rubayat-Ul Islam and his son, Zuhayer Sarar Islam. The other six individuals are also linked to the stock market.
The directive, issued today under the Money Laundering Prevention Act, requires all banks to freeze any accounts previously or currently held in the names of these individuals or their associated entities for a period of 30 days.
Additionally, banks have been instructed to submit all pertinent documents related to the frozen accounts, such as account opening forms, Know Your Customer (KYC) details, and complete transaction histories, to the BFIU within five working days.
The individuals affected by this order include Sayadur Rahman, Managing Director of EBL Securities and former president of the Bangladesh Merchant Bankers Association (BMBA); controversial investor Md Abul Khair, widely known as Hiru; Javed A Matin; Moniza Choudhury from CWT Asset; Md Delwar Hossain; and Soriful Islam.
Shibli Rubayat-Ul Islam, a professor of banking and insurance at Dhaka University, first assumed the role of BSEC chairman in May 2020 for a four-year term. He was reappointed for a second term on April 28 this year but resigned on August 10 following the fall of the Sheikh Hasina government amid widespread protests.
Md Abul Khair, alias Hiru, is the Deputy Registrar at the Department of Cooperatives and a well-known figure in the stock market for his controversial activities. He has been fined several crores of taka for share manipulation in various companies. Allegations suggest that Hiru, with Shibli’s support, profited substantially from these manipulative activities, yet faced only minimal fines from the commission.
Sayadur Rahman, during his tenure as BMBA president, was implicated in the promotion of initial public offerings (IPOs) of companies with weak financial foundations, leading to significant irregularities and a booming placement business.
Javed A Matin, another investor linked to Shibli, was reportedly involved in share manipulation alongside Hiru. Matin holds a substantial stake in Monrac Holding.
The identities of the other two individuals, Md Delwar Hossain and Shariful Islam, remain unconfirmed.
During his time as BSEC chairman, Shibli initiated several reforms aimed at improving the market. These included restructuring company boards, mandating sponsor-directors to hold at least 30% of shares, and reviving long-dormant companies. However, his tenure has also been criticized for allowing over 50 financially weak companies to raise funds through IPOs, which led to significant losses for general investors.
Critics argue that Shibli’s administration failed to take strong action against share manipulators, instead imposing only nominal penalties that allowed influential market players to continue their activities, ultimately harming the interests of general investors.
